The French National Bank is experimenting with the CBDC
“This experiment made it possible to demonstrate the possibilities of interaction between conventional and distributed infrastructures. It also paves the way for other alliances to take advantage of the opportunities offered by financial assets in a blockchain environment, ”said Nathalie Aufauvre, director general of financial stability and operations, according to the statement.
The experiment was carried out in partnership with SEBA Bank and involved the use of the CBDC to simulate the settlement of listed securities. This was intended to trigger their delivery in TARGET2-Securities (T2S) in a test environment.
The Banque de France simulated the new coin in a public blockchain while keeping the control and confidentiality of the transactions. This was done through the development and deployment of a smart contract.
The operations were also carried out in partnership with T2S, and the other programs will remain in effect until the middle of this year.
The lessons learned from this experience will be “an important part of the Banque de France’s contribution to the Eurosystem’s more global reflection on the benefits of the CBDC,” the press release noted.
PYMNTS wrote about the end of a previous Banque de France essay in January, saying the project involved moving to a private blockchain.
The Banque de France recently announced its intention to collaborate with the National Bank of Switzerland on a project related to the CBDC as well, with the intention of studying cross-border settlement. It is called Project Juna and will focus on “the exchange of the financial instrument for a wholesale euro via a delivery versus payment settlement mechanism and the exchange of a wholesale CBDC in euros for a wholesale CBDC in francs Swiss via a payment-for-payment mechanism. “
As the project continues, both banks have also said they are not expected to promise any wholesale CBDC issuance.