The first test passed. The banks Sabadell, Santander, Bankia, BBVA and CaixaBank have successfully passed another new test to be able to carry out digital money transfers in the future. These five Spanish banks, in fact, want to become the first Europeans to be able to carry out these operations, and for now, they are succeeding, according to experts. After passing the first tests, they begin this month a new sectoral proof of concept for this rapid distribution of digital money, or what will be in the future the digital euro that is now being debated by the European Central Bank.
This initiative has its origin in Smart Money promoted by Iberpay, which aims to test the issuance, distribution, exchange and redemption of tokenized digital money in the controlled test environment of what they call the Red-i (interbank blockchain network), managed by Iberpay.
This test, open to the participation of other Spanish financial entities (the project is intended to be sectoral), will last until the second quarter of 2021.
The sector initiative is a continuation of the Smart Payments programmable payments sector initiative, whose trial was successfully completed in July 2020 with the participation of these same five banks, under the supervision of the Bank of Spain, as this newspaper reported.
This sample allowed to validate the viability of carrying out immediate transfers programmed in smart contracts from blockchain networks, such as Red-i, through its connection with the national payment system (SNCE), completing more than 20,000 immediate transfers in this first real test.
The model proposed in this new test focuses, according to the Spanish company Iberpay, on testing the creation of tokens that digitally represent money and their sectoral distribution by banks to their customers through the Red-i, a controlled sandbox already available.
It is intended to sectorally test different design options for this digital representation of money backed by money funds and central bank accounts. In addition, different options for distributing digital money by banks to their customers will be tested, as well as different ways of exchanging digital money between end customers.