Spain gets smart on Sandbox testing

Spain’s new PSOE-Podemos coalition government has drafted the nation’s first ‘sandbox proposal’, in a bid to improve Spain’s legacy financial systems and operating frameworks.

A sandbox is an engineering term which refers to a like-for-like testing environment in which developers and engineers can trial new codes or components replicating ‘real-life’ engagements.  

The Spanish government aims to make its Sandbox an ‘open environment’ allowing for diverse testing of cutting-edge products and new Fintech disciplines, revitalising Spain’s banking systems.

Should parliament approve the proposal, Spain will become the sixth EU member state to launch an open sandbox framework, following The Netherlands, Denmark, UK, Poland and Malta.  

The sandbox directive will be overseen by Spain’s Treasury department, issuing test permits to applicants.

Sandbox applications will be studied and assessed by the Department of Treasury and further relevant authorities, which may include Spain’s central bank, the National Securities Market Commission, and Spain’s Directorate of Insurance.

Spanish banking leadership has welcomed the government’s proposal, stating that Sandbox testing is needed if Spain is to accelerate innovation within its financial fields

Welcoming developments Lucía Pacheco of BBVA’s Regulation team:  The draft proposal is promising because we can move closer to the long-awaited balance between innovative development and necessary financial stability. This step represents an important milestone on that journey.”