Bank of France tests CBDC for equity settlements

Bank of France, together with Swiss crypto bank SEBA completed a pilot project for securities operations using the national digital currency (CBDC).

As part of the experiment, the partners used CBDC to model settlements and the delivery of public equities under the European TARGET2-Securities (T25) mechanism.

SEBA acquired securities from Banque Internationale à Luxembourg, the trade was settled by LuxCSD depository.

According to Nathalie Ofavr, Director of Financial Stability and Operations at the Bank of France, the testing demonstrated CBDC’s ability to interact with distributed and traditional financial systems.

In January 2021 the Bank of France completed a pilot project with the national digital currency worth €2 million as part of testing that began in March 2020.

Earlier in March the Bundesbank tested an independent off-CBDC blockchain solution for settlements.

At the end of April, JPMorgan, DBS and Temasek announced plans to develop an open industry platform based on blockchain for interbank payments, trading and settlements in foreign currencies.

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