The central bank of France continues to actively explore the Central Bank Digital Currency (CBDC), completing an important trial version of the blockchain-based digital currency in the country’s debt market.

More than 500 institutions in France took part in a 10-month trial period to test central bank digital currencies issued by the Banque de France for government bond agreements, the Financial Times reported on Tuesday.

Belgian finance company Euroclear has tested CBDC and used a system developed by American tech giant IBM. The CBDC test also included the French government debt management together with the central bank and a consortium of large financial companies operating in France, including companies such as BNP Paribas, Credit Agricole CIB, HSBC and Societe Generale.

As part of the experiment, participants traded and settled government bonds and securities using the central bank’s digital currency provided by the central bank. The project tested the use of CBDC in a number of day-to-day transactions, such as issuing new bonds, using them in repo agreements, and paying for coupons and redemption agreements.

“Together, we have successfully measured the inherent benefits of this technology and have come to the conclusion that digital currencies at central banks can safely and securely pay for central bank assets,” said Isabelle Delorme, CEO of Euroclear.

According to Søren Mortensen, global director of financial markets at IBM, the project “goes far beyond previous blockchain initiatives” because it has succeeded in piloting “most of the centralized investment firms and central banks,” while reducing existing interim measures as a settlement. between market intermediaries. …

Related Topics: G7 Leaders Release Central Bank Digital Currency Guide

Since launching the central bank’s digital currency pilot program in March 2020, the French central bank has been continuously testing various ways to use the central bank’s digital currencies. In June, Banque de France, in collaboration with the Swiss crypto bank SEBA, tested the CBDC digital currency bank to simulate the settlement and delivery of quoted securities. Previously, the central bank piloted central bank coins to issue $ 2.4 million in mock shares using a proprietary blockchain platform.

Source: CoinTelegraph