Banque de France, the central bank of France, is currently testing a new securities clearing program. The process takes place with the help of digital currency. Thus, the institution continues its work on the development of the digital currency of the central bank (CBDC).
The Banque de France is experimenting with CBDC
On Monday, the bank officially announced successful completion of the CBDC experiment. Swiss bank SEBA, Banque Internationale à Luxembourg and LuxCSD participated in the work.
CBDC was used to settle and deliver listed securities on TARGET2-Securities (T25), the European securities settlement engine. SEBA purchased the securities from Banque Internationale à Luxembourg, with post-trade settlement managed by LuxCSD.
Nathalie Aufauvre, Director General of Financial Stability and Operations at Banque de France, told the media that the latest CBDC test demonstrated the interaction potential of conventional financial systems and distributed systems.
– It also paves the way for other alliances to reap the benefits of the opportunities offered by financial assets in the blockchain environment Said Aufauvre.
The bank noted that the new CBDC test is part of the experimental CBDC program that was launched in March 2020. The goal is to test the CBDC integration for billing. Other experiments that are part of the program will continue until mid-2021, when the Banque de France will test the viability of CBDC.
CBDC in the world
The works of the Banque de France are also probably partly an introduction to the digital issue of the euro, which will probably see the light of day in a few years.
– At this point, we will decide whether we want to introduce the digital currency of the euro or not. I have a feeling – but it’s a decision that will be made together – that we can go in this direction Christine Lagarde, President of the ECB, said at the beginning of the year.
It is already known that the ECB wants to work on the e-euro, but this – also according to Lagarde’s words – will appear on the market only in about 5 years.
This year we should see the digital yuan, which is already on the market, but in a test version. Beijing wants the currency to be the official unit of account for the 2022 Olympics.