The central financial institution of France — Banque de France — is constant its work on the event of a European central financial institution digital forex (CBDC).
On Monday the financial institution formally announced the profitable completion of a CBDC experiment with main Switzerland-based cryptocurrency financial institution SEBA.
Carried out in collaboration with SEBA, Banque Internationale à Luxembourg, and Luxembourg central securities depository LuxCSD, the experiment used a CBDC to simulate the settlement and supply of listed securities on TARGET2-Securities (T25), a European securities settlement engine.
SEBA purchased securities from Banque Internationale à Luxembourg, with post-trade settlement managed by LuxCSD.
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Nathalie Aufauvre, basic director of economic stability and operations at Banque de France, mentioned that the newest CBDC take a look at demonstrated the chances for typical finance methods and distributed methods to work together. “It additionally paves the way in which for different alliances to be able to profit from the alternatives supplied by monetary property in a blockchain surroundings,” Aufauvre mentioned.
The financial institution famous that the brand new CBDC take a look at is a part of an experimental CBDC program launched in March 2020, that goals to check CBDC integration for settlements. This system’s different experiments will proceed till mid-2021 as Banque de France, along with different central banks in Europe, checks the viability of CBDCs.