In December, the Banque de France successfully piloted the central bank’s digital currency, CBDC, for the first time to apply this technology to settle investments on a private blockchain platform.
As the Banque de France announced on Jan.19, the pilot started on Dec.17 and then simulated € 2 million ($ 2.4 million) shares bought and sold by investors using the central bank’s digital currency.
The pilot was carried out using distributed ledger technology provided by SETL, a UK regulated blockchain service provider that also introduced the CBDC Fixed Coin. SETL’s IZNEZ platform was used to track the movement of funds.
CBDCs are centrally issued stacked coins that are created and controlled by banks in a specific country. Unlike stablecoins in cryptocurrencies such as Dai (DAI), central bank digital currencies make no attempt at decentralization, but instead are built from top to bottom.
In the past week, national authorities and banking institutions have been pressured not to outpace the spread of cryptocurrency accumulation. On January 15, US Federal Reserve Chairman Jerome Powell told Yahoo Finance interviewers that the establishment of the CBDC was “a top priority” and needed to combat the proliferation of what he called “private sector bad money.”
On January 11, Agricultural Bank of China launched its first street-level ATM in the Shenzhen area to convert the digital yuan, the currency of China’s central bank, which judges believe could be the first national digital currency to be welcomed.
The Banque de France said on Tuesday that the creation of the CBDC was an important step towards being able to execute instant transactions and at the same time track what is happening. The ad said:
From a technological point of view, the experience required the development and distribution of smart contracts so that the Bank of France could issue and control the circulation of CBDC cryptocurrencies, and so that they were transferred simultaneously with the delivery of tokens of funds. … Shares in investor portfolios. ”
Several other blockchain testing programs appear to be underway at the Banque de France, and some are expected to continue until mid-2021.