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The Central Bank of Spain is testing the effectiveness of the state digital currency

The Bank of Spain (BDE) has announced that it intends to launch a pilot program to study the so-called wholesale digital currencies of the Central Bank.

As part of testing, the Central Bank will check the transaction model of the state digital currency, analyze the advantages and disadvantages of introducing a wholesale CBDC into financial processes and its infrastructure. The BDE claims that its testing program is different from the European Union's research on the digital euro.

The regulator noted that in a number of countries they are experimenting with the retail state digital currency of the Central Bank, but now more and more jurisdictions are analyzing the wholesale state digital currency.. Central Bank employees invite local financial and technology companies to take part in the study.

Parties interested in participating in the program must apply by January 31, 2023. At the same time, companies are required to comply with the minimum requirements established by the central bank.. Participants must disclose the source of capital they are willing to allocate to the project. According to BDE management, the study of the state digital currency will help determine how CBDC is able to meet the needs of today's digital society.

Last month, the Vice President of Spain's National Commission for the Stock Market (CNMV) advised investors to stay away from cryptocurrencies.