Bank of Spain Takes the First Step Towards Crypto Adoption

Key Takeaways

  • According to sources familiar to the central bank, the Banco de Espana intends to study the impact of digitalization on financial services.
  • The goal of the study is to see how digitization affects people.
  • According to the research, bank cryptocurrency projects must be outlined within the next three years.
Bank of Spain Takes the First Step Towards Crypto Adoption

Banks in Spain were preparing to offer cryptocurrency services to their customers. But they are dissatisfied by their central bank’s lack of transparency. The Bank of Spain has been deafeningly silent on the question of digital currencies for years. This year, however, it is becoming apparent.

According to the Spanish newspaper El Pais, the matching registry was supposed to be functioning by Oct. 29, but the banks were still waiting for orders. Finally, a digital currency service provider registration is now available for banks to establish up. The Banco de Espana is currently gathering more information.

The study’s primary goal is to figure out how digitization affects financial services instead of restricting or encouraging the use of digital currency in any way. Ties to digital asset service providers and interests in and other exposure to cryptocurrencies fall within this category. According to the research, bank cryptocurrency projects must be outlined within the next three years.

However, it makes sense for banks to notify that they will be providing the service. In addition, banks will undoubtedly need to amend their money laundering policy to accommodate the dynamics of crypto assets.

The new strategy is being implemented when large Spanish banks are growing more open to digital currency. The country’s largest bank, Banco Santander, has announced plans to develop a crypto exchange-traded fund (ETF).

BBVA and CaixaBank are two more financial organizations testing digital assets. Santander and four other major Spanish banks have created a proof-of-concept for smart contract payment transfers, which they have made publicly available. The Banco Santander blockchain-based bond was redeemed in 2019.

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Chaahat Girdhar

I'm Chaahat Girdhar, a journalist by profession who's turning her dreams into vision and vision into reality. I'm curious and have an appetite for gaining new knowledge. So I'm looking forward to learning things in the better way possible.