{"id":354853,"date":"2021-10-19T11:57:03","date_gmt":"2021-10-19T08:57:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/french-central-bank-pilots-blockchain-based-cbdc-for-debt-market\/"},"modified":"2021-10-19T11:57:03","modified_gmt":"2021-10-19T08:57:03","slug":"french-central-bank-pilots-blockchain-based-cbdc-for-debt-market","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/french-central-bank-pilots-blockchain-based-cbdc-for-debt-market\/","title":{"rendered":"# French central bank pilots blockchain-based CBDC for debt market"},"content":{"rendered":"

“# French central bank pilots blockchain-based CBDC for debt market <\/strong>”
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The central bank of France continues actively exploring a central bank digital currency (CBDC), completing a significant trial of a blockchain-based CBDC in the country\u2019s debt market.<\/p>\n

Over 500 institutions in France have participated in a 10-month experiment testing a CBDC issued by Banque de France for government bond deals, The Financial Times reported<\/a> Oct. 19.<\/p>\n

The CBDC trial was led by Belgium-based financial services firm Euroclear and used a system developed by American technology<\/a> giant IBM. The CBDC test also involved the French public debt office alongside the central bank and a consortium of major financial companies operating in France, including firms like BNP Paribas, Cr\u00e9dit Agricole CIB, HSBC and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale.<\/p>\n

As part of the trial, the participants traded government bonds and security tokens, settling them using a CBDC supplied by the central bank. The project tested use cases of a CBDC in a range of everyday activities, such as issuing new bonds, using them in repurchase agreements, as well as paying coupons and redeeming deals.<\/p>\n

\u201cWe have together successfully been able to measure the inherent benefits of this technology, concluding that the central bank digital currencies can settle central bank money safely and securely,\u201d Euroclear executive Isabelle Delorme said.<\/p>\n

According to Soren Mortensen, global director of financial markets at IBM, the project \u201cwent well beyond previous blockchain initiatives\u201d because it successfully trialed \u201cmost central securities depository and central bank processes\u201d while cutting off existing interim steps like reconciliation between market intermedia<\/a>ries.<\/p>\n

Related: <\/em><\/strong>G7 leaders issue central bank digital currency guidelines<\/em><\/strong><\/p>\n

After launching an experimental CBDC program in March 2020, the central bank of France has been consistently testing various CBDC use cases. In June, Banque de France tested a CBDC to simulate the settlement and delivery of listed securities in collaboration with Swiss cryptocurrency bank SEBA. Previously, the central bank piloted a CBDC to issue $2.4 million worth of simulated shares using a private blockchain platform.<\/p>\n