crypto content platform
Home arrow Article arrow Article Detail

The Central bank of France and Societe Generale Tested CBDC successfully on Blockchain

Profile Image

Ingle Jayashree

CBW -External Analyst

INDIA

Aug, 26 2020

Aug, 26 2020

likes 0 | comments 0

Article Image

#Cryptoassetrating #CryptoBusinessWorld #Tokenizationassetplatform #CBW #digitalassets #cryptoassets #ratingagency #blockchain #crypto #cryptocurrency #cryptobusinessnews #cryptonews #breakingnews

The Central Bank of France-Banque de France and major investment bank Societe Generale have successfully tested blockchain-based central bank digital currency(CBDC) the first time in France.

Societe Generale SFH issued €40 million (approx. $ 44 million) of covered bonds and settled them instantly using the digital euros with delivery versus payment (DvP) to carry out the transaction.

As per the announcement, the Central bank used its in-house developed blockchain to run the CBDC transaction. The bank also indicated that it is focusing more on wholesale uses cases than retail uses for the digital euro. 

The official statement from the Banque de France quotes:

“Since the start of the year, the Banque de France has embarked on an experimental approach to central bank digital currency, aimed at exploring with partners the potential contributions of new technologies to improve the functioning of the financial markets and more particularly interbank regulations (So-called “wholesale” central bank digital currency).”

“The results of these experiments will be an important element of the Banque de France's contribution to the more global reflection led by the Eurosystem on the interest of [a CBDC],” said the central bank.

The statement from Societe Generale expounds:

“This experimentation was performed end to end using blockchain infrastructure. It demonstrates the feasibility of financial securities being digitally settled and delivered in Central Bank Digital Currency (CBDC) for interbank settlements.”   

In 2018, the Societe Generale bank had issues bonds worth €100 million (Approx. $110 million) as security tokens, but that transaction was settled in a traditional euros.

The Societe Generale bank clarified that the latest transaction conducted in digital euro is a new stride achieved by the bank using the innovative technologies aiming to serve the clients in a better way.

The Central Bank further confirmed that in the coming weeks, they will run more tests of the technology.


 Disclaimer

The information provided through the above Content is for informational purposes only. The Content is not intended to be, and does not, constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. We do not make any guarantee or other promise as to any results that may be obtained using our Content. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses.


likes 0 Likes | comments 0 Comments

Profile Image

Ingle Jayashree

CBW - External Analyst

INDIA

Comments
WHAT IS AN EXTERNAL ANALYST
banner
Article
Crypto Custodian Copper Plans to Bridge Gap Between Traditional Finance and DeFi

Crypto Custodian Copper is planning to associate institutions to the developing world of decentralized finance (DeFi) with a recently discovered product. On Friday, it was announced that the...;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.