Banc Sabadell and Bankinter are among several Spanish financial institutions expected to join the Qivalis consortium, a project founded by CaixaBank and BBVA, to launch a stablecoin pegged to the euro. Bankinter is expected to make a final decision this summer, with Abanca and Kutxabank also considering participation, according to various sources.
This initiative by Qivalis, which already includes 12 European banks, aims to adapt to the increasing digitalisation of payment methods. The project seeks to counter the dominance of the US dollar in the digital currency space, a trend that has raised concerns among regulators.
Christine Lagarde, President of the European Central Bank (ECB), has warned about private cryptocurrencies, particularly those dominated by the dollar. The ECB is developing a digital euro, an electronic equivalent of banknotes and coins, expected by 2029. José María Escrivá, Governor of the Bank of Spain, stated that 'private stablecoins, by their nature, cannot be the pillar of the monetary system.' He added that central banks provide 'the ultimate anchor of confidence' that private instruments cannot replace.
Understanding Digital Currencies
Stablecoins are cryptocurrencies promoted by the private sector, similar to Bitcoin, but are linked to an asset like the euro to prevent sharp value fluctuations. They function like a voucher or available balance. In contrast, the digital euro is an electronic equivalent of physical cash, designed for everyday transactions such as buying groceries or coffee. It will likely have a daily spending limit, possibly €3,000, to prevent traditional deposit flight and financial instability. Both aim to facilitate fast, secure, and stable digital payments 24/7, particularly for international transfers.
Both stablecoins and the digital euro maintain parity with their pegged fiat currency; one digital euro equals one euro, and the same applies to a stablecoin. However, the ECB does not back stablecoins, and they can experience some fluctuation, as seen with Tether in 2022 and USDC during the Silicon Valley Bank crisis. Neither has a physical form, existing in digital wallets and using technologies like blockchain.
Stablecoins are often used for trading or remittances, while central bank digital currencies (CBDCs) are intended for daily expenses. The stablecoin market has grown significantly, from approximately $160 billion in 2024 to over $300 billion today, with daily and annual transaction volumes surpassing networks like Visa. This growth is a key reason for regulatory concern.
Qivalis Consortium and its Goals
The Qivalis consortium, headquartered in the Netherlands, currently includes CaixaBank, BBVA, BNP Paribas, ING, Banca Segella, Unicredit, KBC, Danske Bank, DekaBank, SEB, and Raiffeisen Bank International. It is led by Executive Director Jan-Oliver Sell, former Executive Director of Coinbase Germany, with Howard Davies, former Chairman of NatWest Group and the FSA, serving as Chairman of the supervisory board. Manuel Galarza represents CaixaBank on the board.
One of Qivalis's main objectives is to increase the euro's influence in the digital currency space. Its stablecoin will enable near-instant, low-cost payments and settlements, available at any time, including cross-border transactions and the settlement of digital assets like securities and cryptocurrencies. This stablecoin is primarily aimed at businesses and institutions rather than individual consumers, who already have instant transfer options like Bizum.
Meanwhile, Banc Santander is exploring a separate project with international financial giants such as Bank of America, Barclays, Citi, Deutsche Bank, Goldman Sachs, MUFG Bank, TD Bank Group, and UBS. Their digital currency would be linked to G-7 currencies, including the euro, dollar, and yen.
