Banque de France, the central Bank of France have completed successfully their first test on the their CBDC (central bank digital currency), a currency based on Blockchain in partnership with the investment bank Societe Generale the giant financial institution that issued bonds of securities tokens and then made settlement on digital Euros.
The news was released this Wednesday and accordingly to Societe Generale website the firm issued €40,000.000 worth of covered bonds as security tokens to ran the experiment with Banque de France, that settled the bonds into Euros to be tested on the central bank Blockchain. This test was successful and let the giant Societe Generale to participate in the first experiment conducted by France Central Bank in digital Euros, which was performed end-to-end using the latest blockchain technology.
The first test concluded the feasibility of the bonds being digital settled and delivered into central bank digital currency for interbank operations.
Banque de France launched the program in pilot phase on April after last year announced that experiments in digital euro will be conducted in Q.2 of 2020, also the European Central Bank already announced that will be issuing their CBDC if Commercial Banks fails to present affordable and faster ways of payments as the existent are becoming obsolete.
The tests will surely help Banque de France to improve more their Blockchain and study what more benefits will come from adopting digital Euro and will contribute to reflect on what is good to all Europe regarding interest in central bank digital currency.
To note that for now France have no intention to replace the banknotes or coins for digital euro and more tests with different partners will be conducted in the coming Months to define the advantages to have a digital Euro and what benefits could come from Blockchain based currencies.
#stay safe from COVID-19 stay Home.
***Protect your privacy download Brave Browser.
**Free Image from pixabay with rights for commercial use here.
