Bank Of France Starts Testing Digital Currency-Based Security Settlement

Bank of France starts testing digital currency-based securities settlement as it completed a pilot for securities transactions in collaboration with the Swiss bank SEBA so let’s read more today in our latest cryptocurrency news.

The central bank of France starts a new pilot after it completed a central bank is continuing its work on the development of the European Central Bank Digital currency and on Monday it announced officially that they successfully completed the CBDC experiment with the major Swiss-based crypto bank SEBA. Conducted in collaboration with SEBA, the Banque Internationale a Luxembourg and Luxembourg central securities depository LuxCSD stated that the experiment used a CBDC to simulate the settlement and delivery of listed securities on TARGET2 securities. SEBA purchased securities from Banque Internationale a Luxembourg with a post-trade settlement managed by the LuxCSD.

Nathalie Aufauvre who is the general director of financial stability and operations at the Bank of France said that the latest CBDC pilot showed the possibilities for conventional finance systems and distributed systems to interact and also stated that:

“It also paves the way for other alliances in order to benefit from the opportunities offered by financial assets in a blockchain environment.”

The bank noted that the new CBDC test is only a part of an experiment CBDC program that was launched in March 2020 which aims to test the integration for settlements of central bank digital currencies. The other experiments will continue until mid-2021 as the bank in addition to other central banks in Europe with tests of visibility of CBDCs.

As reported previously, France is one of the few European countries that are trying to pioneer a digital euro. France’s Central Bank, The Banque De France, selected 8 potential partners including HSBC, Seba Bank, and Accenture to try and modernize the settlement via a central bank digital currency. As the institution is heading the digital euro initiative, the Banque de France called the applicants back in March to propose an experimental CBDC framework to refurbish the interbank settlement and to lay the ground for a digital euro. According to a statement from the bank, the applicants were chosen and the work is already underway. These are not the only companies that are going to work with the bank. Iznes- a blockchain-powered record-keeping platform for funds will join the bank, LiquidSharem also a blockchain-based post-trade settlement for SMEs, and the French Financial institution Societe Generale’s Forge which is a tech platform designed to promote blockchain-based activity