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June 27, 2022
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Banque de France for testing CBDC used Ethereum –

Digital bonds worth EUR 100 million helped in CBDC tests, has just handed over the Banque de France, the central bank of France. The securities were issued by the European Investment Bank earlier this week.

Banque de France uses Ethereum

In a statement from France’s central bank, Banque de France, it was revealed that the digital bonds were cleared using CBDC, a digital currency based on blockchain.

The two-year bonds were issued on the public blockchain Ethereum on Tuesday and settled on the next day with the maturity date on April 28, 2023. The sale was conducted by Goldman Sachs, Santander and Societe Generale.

– From a technological point of view, the experiment required the development and implementation of smart contracts on secured terms, so that the Banque de France could issue and control the circulation of CBDC tokens and that the transfer of CBDC took place simultaneously with the delivery of securities tokens to investors’ portfolios – handed over the Banque de France.

The bank also revealed plans for further experiments to take place in the future:

In the coming months, in collaboration with the market, the Banque de France will conduct additional experiments to evaluate other uses of the central bank’s digital currency in interbank settlements.

The news that the bank had issued bonds on Ethereum raised the price of Ether (ETH) to over $ 2,850. Danny Kim, head of revenue at SFOX, told Reuters the announcement may prove to be a breakthrough for this very platform and cryptocurrency.

The European Central Bank and the CBDC

The work in France is probably an introduction to the tests that can be carried out by the European Central Bank. In January this year, the governor of the euro area central bank, however, Christine Lagarde said she was developing a digital euro “It will take a long time to make sure it is safe.” She added:

Hope not more than five years.

On 12 April, the head of ConsenSys South Africa, Monica Singer, warned that Europe could fall behind if it was too slow to work on digitizing currencies:

If a central bank in Europe waits until 2028, there will be no central bank by then. Because who will use the euro in its current form? There will be so many possibilities.

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