The Bank of France (Banque de France), the central bank of France, has partnered with major Switzerland-based cryptocurrency bank SEBA, as it completed a central bank digital currency (CBDC) pilot for securities transactions.
It has been reported that in collaboration with SEBA, Banque Internationale à Luxembourg, and Luxembourg central securities depository LuxCSD, the experiment used a CBDC to simulate the settlement and delivery of listed securities on TARGET2-Securities (T25), a European securities settlement engine.
However, SEBA purchased securities from Banque Internationale à Luxembourg, with a post-trade settlement managed by LuxCSD.
Nathalie Aufauvre, the General Director of Financial Stability and Operations at Banque de France, said that the latest CBDC test demonstrated the possibilities for conventional finance systems and distributed systems to interact.
She added:
“It also paves the way for other alliances in order to benefit from the opportunities offered by financial assets in a blockchain environment.”
The report said that the bank noted that the new CBDC test is part of an experimental CBDC program launched in March 2020, which aims to test CBDC integration for settlements.
Thus, the program’s other experiments will continue until mid-2021 as Banque de France, in addition to other central banks in Europe, tests the viability of CBDCs.
Source: Cointelegraph
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