With pressure continuing to mount on banking institutions and national governments to align themselves with the growing cryptocurrency space, the Bank of France recently revealed it had successfully completed a central bank digital currency (CBDC) pilot project back in December.
According to an announcement by Le Banque de France, the central bank began a pilot project on December 27, which saw the purchase and sale of $2.4 million in simulated shares by investors using a CBDC. This is the first time that CBDC technology was used to settle monetary fund shares on a private blockchain platform, and mirrors China’s CBDC pilot project, which has processed more than 3 million transactions since its launch.
The Bank of France’s pilot project utilized distributed ledge technology and a CBDC stablecoin, both of which were provided by SETL — a regulated blockchain services provider based in the UK. SETL also provided its IZNEZ record-keeping platform, as a means of maintaining complete oversight of the instant transactions.
The potential mainstream utilization of CBDCs is becoming a focal point for a number of central banks around the world. In January, US Federal Reserve Chairman Jerome Powell revealed to Yahoo Finance that the creation of CBDCs has topped the list of the central bank’s main priorities, especially as a means of combatting some of the risks associated with the growth of cryptocurrency stablecoins.
Information for this briefing was found via Le Banque de France, Yahoo Finance, and Coindesk. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.