Iberpay and the 16 main Spanish banks have successfully concluded a sectoral proof of concept called Smart Money and focused on the experimentation of the practical technical aspects and the different design options of a digital euro, with the aim to prepare the financial sector for an eventual decision from the European Central Bank (ECB) to issue a digital euro as a complement to cash.
Different digital money designs proposed by the ECB in its Report on the digital euro have been tested, such as: token-based and account-based models, DLT technology, online digital money payments and the possibility of making offline payments without internet connection, limits on the possession and use of digital euros, privacy or programmability of payments by using smart contracts.
A Smart Money & Payments Working Group, formed by top-level experts from banks in the areas of payments, innovation, blockchain, public policy and legal, was set up and has been contributing to the project decisively with their knowledge and experience, providing a multidisciplinary, sectorial and collaborative approach to the initiative.
Main conclusions of the Smart Money initiative
The project has recently completed a phase of technical and practical testing within the Red-i (interbank blockchain network launched and managed by Iberpay, in operation since 2019 and proved in other innovation projects).
The experiments confirm the viability of a model for the distribution of a digital euro within the Spanish financial sector, with the following main conclusions: