The Bank of France successfully completed the first test of Digital Euro, the blockchain-based digital currency. Speaking on Wednesday, Banque de France said it is conducting the trial process with investment banking giant Societe Generale. Societe Generale issued 40 million euro ($ 44 million) of secured bonds as securities tokens on May 14. It was then placed in the blockchain-based digital euro of the central bank.
"This experiment was carried out end-to-end using blockchain infrastructures ... This shows the feasibility of digital securities placed and distributed digitally to the Central Bank Digital Currency (CBDC) for interbank payments," explained Societe Generale.
The investment bank has defined this test as "a new step in Societe Generale that enhances the transformation by using the most innovative technologies in order to provide a better service to its customers."
The French Central Bank said it will continue its digital euro tests with other players "in the next few weeks". "The results of these trials will make significant contributions to the global reflection of Banque de France's Euro system," the Central Bank said.
Digital euro statements made in the past
Banque de France launched the digital euro experiment program in April. In addition, the central bank said they did not intend the token to replace the coins and banknotes.
On the other hand, the European Central Bank has said it is willing to issue its own digital currency unless the private sector makes cross-border payments faster and cheaper.