The Banque de France, or Bank of France, the central bank of France, has succeeded in an experiment using a digital currency of the central bank central (CBDC) on the issue of a French government bond.
According to the announcement:
“The experiment consisted of simulating an approved blockchain of government bond issuance (OAT) by Agence France Trésor, followed by several secondary market operations for these bonds.”
Cash settlements were simulated with the blockchain-powered CBDC. The Bank of France experimented on the 21st and 24th of this month in collaboration with a group of economic operators led by Euroclear. The program started in March last year.
CBDCs are digital assets that are tied to a real asset and through which Central banksthat is, they represent a requirement on the bank, just as banknotes work. In addition, they are blockchain-enabled, which is a new technology for issuing central bank money at the wholesale and retail levels.
The interoperability between legacy and distributed architectures
Nathalie Aufauvre, Director General for Financial Stability and Operations at Bank of France said:
“As a new achievement, such as exploring the wholesale CBDC potential, this experiment made it possible for the first time to test financial optimization on a blockchain with REPO operations, as well as synchronize collateral operations between the blockchain and the European securities settlement platform Objective 2 Securities. “
“This provides a very good illustration of the interoperability between legacy and distributed architectures.”
The experiment also included creating and deploying smart contracts so that the French central bank could issue and control the circulation of CBDC tokens, triggering their simultaneous transmission.
Meanwhile, the Bank for International Settlements (BIS) recently announced its full support for central banks’ development of CBDCs to achieve financial and monetary stability through international cooperation.
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