According to sources in the Banco de Espana, Spanish banks will now report on the cryptocurrency plans. They argue that the central bank wants to study the effect of digitalisation on financial services.
The Bank of Spain has been silent about cryptocurrencies for years. But this year it is becoming more active and asserting itself. After the register of providers of cryptocurrency services has been created, it goes to the banks.
The Banco de Espana is now seeking further information from financial institutions operating digital money, according to a report from Spain’s El País.
The aim of the study is to investigate the effect of digitization on financial services, not to ban or support digital currencies. The central bank encourages commercial banks to disclose their relationship with digital asset service providers, their shares and any other risks they may have in relation to cryptocurrencies.
Banks wishing to launch or offer storage of existing cryptocurrencies over the next three years should split such projects.
The latest developments are taking place as the leading Spanish banks start using digital currencies. Banco Santander, the largest bank in the country, said it was working to set up a cryptocurrency exchange fund. Other financial institutions such as BBVA and CaixaBank are also in various stages of implementing their digital asset initiatives.
Banco Santander and four major Spanish banks have reportedly completed a proof of concept for payment transfers using smart contracts. It was also reported that Banco Santander repurchased its blockchain-based bonds in 2019.