Bank of France has successfully tested securities settlement with CBDC
As part of the pilot program for digital currencies launched in March 2020, the Bank of France claims to have successfully used a digital central bank currency (CBDC) in a process simulation.
The test was carried out with the help of a partner consortium led by SEBA Bank, a digital asset banking provider based in the Swiss crypto valley.
In one Press release On Monday June 18, the Bank of France announced that it had successfully simulated the issuance of CBDC tokens on a public blockchain while maintaining control of the transactions. The bank explains:
“A dedicated smart contract has been developed and provided. In addition, the Eurosystem’s Target2-Securities (T2S) was used as the delivery platform. All transactions are carried out in partnership with SEBA Bank AG, together with Banque Internationale à Luxembourg, the oldest multi-enterprise bank in the Grand Duchy, and LuxCSD, a central securities depository service.
Regarding the security of the transactions, SEBA declares that they have been carefully processed through a protocol that uses a zero-knowledge-proofs algorithm that encrypts the value of the transactions and hides CBDC transactions on a public blockchain. Attendees successfully demonstrated the ability of distributed ledger technology to communicate with T2S during settlement of listed securities.
BOF Director General for Financial Stability and Operations, Nathalie Aufauvre, emphasized that the trial had shown the potential of CBDCs through the interaction between conventional and distributed infrastructure. She believes this experiment will pave the way for other alliances to take advantage of more opportunities from blockchain technology.
Earlier this month, the Bank of France and the Swiss National Bank announced a partnership with the Bank’s Innovation Center for International Settlements to test the use of CBDCs in cross-border settlements. The studies are being carried out with the support of a regional consortium led by Accenture, which includes Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS.
According to News Bitcoin