BUSINESS | Jun 22, 2021 | WOZINGA NEWS
Banque de France successfully executed the CBDC test for securities settlement
- Bank of France revealed the success of the testing for securities settlement on June 18, 2021.
- Other CBDC experiments are still in progress until mid-2021.
By Marielle Petere Wozinga Journalist
Banque de France accomplished the Central Bank Digital Currency test for settlement of listed securities, announced Monday. Currently, it expands the CBDC experiment for the wholesale market.
For the development of the European Central Bank Digital Currency, the Bank of France revealed the success of the testing for securities settlement on June 18, 2021.
In regards to the CBDC test, Banque de France has collaborated with SEBA bank (a Swiss digital asset bank), Banque Internationale à Luxembourg, and Luxembourg Central Securities Depository (LuxCSD).
French experiments for digital currency
Meanwhile, the bank explained that they ”simulated the CBDC issuance on a public blockchain.”
CBDC testing has used the Conditional Securities Delivery as the feature of TARGET2-Securities (TS2). TS2 is a European securities settlement platform.
In addition, Coindesk also reported the completeness of the interbank settlement pilot last January. It was worth around €2 million on a private blockchain.
Banque de France joined with the Swiss National Bank for the cross-border CBDC experiment called “Project Jura.” The purpose of the test is for “the wholesale-lending market.”
CBDC for Eurosystem
In the case of CBDC experiments, Nathalie Aufauvre is the General Director of Financial Stability and Operations.at Banque de France. She commented about it.
Moreover, Aufauvre said, “this experiment made it possible to demonstrate the possibilities of interaction between conventional and distributed infrastructures.”
“It also paves the way for other alliances in order to benefit from the opportunities offered by financial assets in a blockchain environment,” Aufauvre added.
Also, the press release mentioned that other experiments are still in progress until mid-2021.
It concluded, “all the lessons learned will be an important part of the Banque de France’s contribution to the Eurosystem’s more global reflection on the benefits of CBDC.”