Bank of France Completes €2 Million Pilot CBDC Project

France’s central bank announced on Tuesday that it has successfully completed the CBDC pilot project last month that has captured the full settlement cycle.

January 20, 2021 | AtoZ Markets – France’s central bank, Le Banque de France has successfully tested the central bank digital currency (CBDC) in a pilot project with the placement of tokenized shares of a foreign exchange fund worth more than €2 million. The regulator used a private blockchain platform for this for the first time, according to a press release.

French Central Bank Completes CBDC Pilot Using DLT Technology

The CBDC pilot project started on December 17. As part of the experiment, investors bought and sold shares of a foreign exchange fund on the blockchain of the British company SETL. Calculations were made in the digital currency issued using DLT technology.

The experiment required the central bank to develop and implement smart contracts that ensured the issuance and control of the CBDC, as well as the transfer of digital currency simultaneously with the supply of tokenized shares to the investor’s portfolio.

The pilot was attended by the insurance group Groupama, financial conglomerate Citigroup, bank Caceis, asset manager OFI AM, blockchain project IZNES, and IT company DXC.

“This experiment represents significant progress in assessing the leverage that the central bank’s digital currency provides to improve the efficiency and sustainability of financial asset settlement in the blockchain environment, and thereby contributes to the successful functioning of the real economy,” the Central Bank said in a statement.

As a reminder, the Bank of France began testing the CBDC in March 2020. In May, the regulator announced successful trials of a digital currency for interbank payments.

Read also: Will CBDC Make Life Easier?

In December, a representative of the Central Bank clarified that there will be eight pilot projects. In his opinion, experiments with digital currency will lead to a revision of the regulatory framework.

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