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


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.
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Jayashree Ingle
CBW - External Analyst
INDIA