France has also joined the list of the countries which are planning to launch their own central bank-backed digital currencies. The French central bank over the months has assessed the evolution of central bank digital currencies and their impact of on real-world economic activities as well. However, the bank has finally decided to launch its own digital currency for the debt market. For this task French central bank has developed ties with Euroclear a Belgian financial service provider company.
Before the announcement of such initiative more than 500 institutions tested the use of CBDC issued by Banque de France for government bond deals, for almost 10 months, as per the Financial Times report on Tuesday. This has made France the latest European nation which has decided to jump into the CBDC race.
This CBDC trail was initiated by the Euroclear a financial services provider and mechanism for this trail campaign was designed by the U.S based Technology Company famously known as IBM. Moreover, the other major names involved in the CBDC trail were the central bank of France and the Public debt office. Apart from these government institutes, some private institutions such as BNP Paribas, Credit rating agency Agricole CIB, HSBC and Societe Generale were also the part of the CBDC trails.
However, the participants of this trail campaign traded government bonds and security tokens, using them as the CBDC supplied by the French central bank. The project practically tried to implement the scenario of suing CBDC for the daily life activities, such as issuing offering new bonds, the usage of these bonds for the repurchase agreements.
Isabelle Delorme the Chief Executive of Euroclear said that the benefits of using CBDC technology has been tested by the multiple institutes. It has been tested that central bank digital currencies can settle money safely and securely.
In the same way the global director of IBM said that the project testing has exceeded the company’s expectations. And surpassed all previous blockchain initiatives in reading the use of CBDC.
The Central bank of France over the past several months is testing multiple cases of usage of CBDC. Banque de France also tested its CBDC usage in collaboration with Swiss cryptocurrency bank SEBA. The officials have said that the successful implementation of CBDC will make the steps far less complicated by eliminating the role of many unnecessary factors. It seems only the matter of time when CBDC will integrate with the monetary sector and make the financial market far speedier accurate and risk free.