Banque de France Completes CBDC Pilot
- The French central bank completed its CBDC pilot in collaboration with blockchain service provider SETL, who provided the private blockchain and CBDC stablecoin.
- The pilot saw 2 million euros worth of simulated shares purchased and sold by investors using a CBDC.
Low angle view of the wrought iron gate of the Bank of France building with the golden letters of the signboard lit by the sun in Besançon, France on 17 February 2008. Shutterstock
Banque de France has successfully completed its central bank digital currency (CBDC) pilot in collaboration with U.K.-based blockchain service provider SETL, the bank said in a press release on 19 January.
According to the announcement, the pilot project began on 17 December and used distributed ledger technology provided by SETL. The firm not only provided the CBDC stablecoin used in the test, but also used its IZNEZ administration platform to monitor and track the movement of the digital asset. Considering the experiment’s wholesale nature, the primary use cases for this CBDC appear to be for capital markets or trading transactions.
France’s central bank used smartcontracts to issue and control the circulation of the digital euro, which was used by investors to purchase and sell 2 million euros worth of simulated shares. The bank said the advantage of having a digital currency was the ability to execute instant transactions, while keeping complete track of the currency. It further said:
“From a technological point of view, the experiment required the development and deployment of smart contracts so that the Banque de France can issue and control the circulation of CBDC tokens and that their transfer takes place simultaneously with the delivery of the tokens of fund shares in the investors’ portfolio.”
This is not the first time the central bank had tested its digital euro. Back in May 2020, Banque de France collaborated with investment bank Societe Generale to experiment with the use of CBDC for settling an issue of digital financial securities.
The bank’s press release also revealed this experiment is one of several being conducted as part of the same CBDC program. Banque de France expects to report on its additional trials around the middle of 2021.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- Planned for 1 April, the CBDC trial will involve real consumers and real transactions, though they will be limited to a certain number of customers and transfers.
- The pilot, however, will not be opened to the general public in its first phase, and will only be opened to customers chosen by the 13 participating local banks.