France successfully completes CBDC Trials for Treasury Bond Blockchains
France is ready to settle French Treasury bonds on Blockchain. A consortium of institutions led by Euroclear have completed the CBDC trials.
The governments across the world are looking for ways to capitalize on the Blockchain technology. The central banks want to give their residents the best of the world by converting their Fiat into digital currency. Multiple banks are considering their own digital currencies to rival those that are currently ruling the crypto world.
Many countries such as EL Salvador, Mexico have even declared crypto assets as legal tender too. To be one of the early bird and fully utilise the Blockchain technology many countries have begun actual development. However, France is currently winning the race as they have tested their Central Bank Digital Currency (CBDC) in trials. The experiment is one of the EU’s largest till date with nearly 500 transactions executed during trials.
France successfully completes CBDC Trials
On Wednesday, Banque de France and Swiss National Bank, announced the successful completion of Central Bank Digital Currency. The project, titled Project Jura, aims to investigate cross-border settlement with Euro and Swiss Franc with CBDC on the Blockchain technology.
This project is completed with the regulatory framework of the two countries, ensuring all the legal, regulatory and business rules of the involved countries are satisfied first.
The transaction system is developed by IBM according to the statement from the Securities Depository Euroclear. The consortium for the trials include some of the big names such as BNP Paribas, Credit Agricole CIB, HSBC, Societe Generale and French public debt office.
The trials included nearly 500 instructions in both primary and secondary markets.
Digital Assets are the latest, no country wants to miss s
China started the race where countries are looking to explore potential uses of CBDC in their own jurisdictions. It is currently the largest economy which is working for implementation of CBDC in the domestic market. They also have plans to extend trials for tourists soon.
According to a survey published by Bank for International settlements, more than 70% of Central Banks are planning to develop their own digital currency. This has been mainly due to the threat to fiat stability by crypto especially stable coins pegged to fiat money.
This latest trials by Banque de France is an effort to get ahead of the change that is steadily spreading over the world. The CBDC trials by France went well beyond previous Blockchain initiatives. According to the global director of Financial Markets, IBM, “This project went well beyond previous Blockchain initiatives because it successfully tested most central securities depository and central bank processes whilst eliminating current interim steps, such as reconciliation between market intermediaries.”
Although the CBDC trial was successful, it does not guarantee the issuance of wCBDC by Swiss, French or European Union Authorities. France successfully completes CBDC Trials for Treasury Bond Blockchain however the issuance of digital CBDC is still ways to go.
