France Tested Its CBDC with a 10-Month Experiment: Report

France, one of Europe’s leading economies, has completed its 10-month experiment to see how a central bank digital currency would work with its debt market. Euroclear, a financial services company, led the project. It included participation from some of the country’s biggest banks.

France pushes for a CBDC

Last year, Banque de France, the central bank of France, collaborated with Euroclear (a Belgian financial services company) and other leading participants in the French financial markets.

A Financial Times report recently revealed that the two organizations traded government bonds over a 10-month trial period and settled transactions using a CBDC issued from the central bank.

This project also evaluated the utility of such a token in everyday activities like paying coupons, redeeming deals and issuing new bonds.

Societe Generale and BNP Paribas were some of the major names in the alliance, while Credit Agricole CIB was the American multinational technology company that developed the system. Soren Mortensen, Global Director for the latter, commented:

“We are moving quickly towards fundamental changes in the post-trade infrastructure. This project was a step beyond other blockchain initiatives. It successfully tested central securities depository and central banking processes while eliminating interim steps such as reconciliation among market intermediaries.

Isabelle Delorme, Deputy Chief Executive at Euroclear France, also shared her views on the trial. She believes that the collaboration between these institutions was successful because they demonstrated that central bank digital currencies could be used to settle central bank money securely and safely.

Are you ready to change your heart?

Banque de France’s recent decision to explore and possibly launch a central bank digital currency is a surprise move. Francois Villeroy de Gallau, the head of the institution, recently labelled the financial tool as dangerous and called for strict regulations.

He also stated that private cryptocurrencies pose a similar threat to the European Union this summer. He warned that the EU must act quickly to create a regulatory framework for bitcoin and other altcoins. He warned that the Union’s financial dominance would be threatened if it does not act quickly.

“Whether it’s digital currencies or payments we as Europeans must be prepared to act quickly or risk losing our monetary sovereignty.”

The banker stated that the euro’s international performance is at risk if regulators don’t take appropriate regulatory action. He believes that the move should be in place within the next one to two years or the EU will “lose its momentum.”

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the””  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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