Spain Blockchain Technology

To continue their positive GDP growth rate trend from the last three years, Spain has been investing in new technologies. Blockchain technology is of particular interest to Spaniards, for its application in both the public sector as well as the private sector. Spanish and EU officials believe that this technology and other technologies using distributed ledger technology can be used to increase the efficiency of many business processes as well as provide increased traceability, transparency and liability.

In February 2018, the Spanish government proposed legislation that would provide tax incentives for companies using Blockchain technologies. The lawmaker writing the bill, Teodoro Garcia Egea (General Secretary of Spain’s Partido Popular), believes that this technology will be “a driver for business in industries such as finance, health and education.” To date, no specific legislation has been passed, but the government seems optimistic that such legislation will be approved by the end of the year.

Even more recently, in June of 2018, deputies in parliament created a bill proposing the implementation of Blockchain technology in the public administration of Spain. While there are many who are eager to begin using Blockchain technology and other distributed ledger technology, some Spanish and EU officials are hesitant as they want to ensure that guidelines and regulations are clearly established before the technology becomes widely used or legislation is passed. Spain not only hopes to be able to incentivize the use of this technology, but also hopes to become a leader in the offering of safe ICO’s (Initial Coin Offerings) for startup companies and investors.

In the private sector, Blockchain has already been used by some Spanish banks and is even being applied in agriculture. The Spanish bank BBVA made a transaction of 75 million EUR and successfully reduced the time spent on the transaction from days to hours. Olivacoin, a Spanish startup, has been able to implement the technology in their supply chain management and sale of olive oil. By using Blockchain technology, they have been able to assure the quality, correct labeling, and timely arrival of olive oil products. As new legislation is formed, it can be expected that more companies will begin to use the new technology in controlled experimental phases.

For more information, contact our office in Madrid at office.madrid@trade.gov