KEY POINTS

  • The Bank of France joined hands with more than 500 firms to test CBDC.
  • After the discussions at G7 Summit, the testing in France and the UK began.
  • The introduction of CBDCs is being viewed optimistically by prominent individuals in the private sector. 

France's central bank has successfully completed a series of bond transactions on blockchain technology as part of a larger trial to integrate Central Bank Digital Currencies (CBDCs) into the traditional monetary system, Financial Times reported.  

The Banque de France partnered with Belgium-based financial services provider Euroclear for implementing these transactions. Euroclear’s website did not disclose the actual monetary value of transactions.

The central bank released CBDC for government bond transactions which were tested under a system developed by IBM. More than 500 firms have taken part in the testing process that will continue for 10 months.

The testing of CBDCs involved the participants selling the government bonds and security tokens with the help of blockchain-based digital currencies the central bank supplied. The trial involves various organizations, including the public debt office of France and a consortium of firms such as BNP Paribas, Crédit Agricole CIB, HSBC and Société Générale.

Euroclear executive Isabelle Delorme said, “We 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.”

CBDCs on a global scale

France is not the only country working on CBDCs. G-7 members have already discussed ways of adopting and issuing CBDCs. 

While the UK conduct its own research into the digital currency, private individuals have formed a Digital Pound Foundation to fast-track the adoption and introduction of the digital currency.