France has completed its 10-month experiment examining how the CBDC would work with government bonds. The research involved the Central Bank of France, the Banque de France, and other local monetary institutions. How did the experiment turn out?
France and the CBDC experiment
Last year, the French central bank began working with a Belgian financial services company and many other leading French financial market institutions. The result was a 10-month experiment that tested CBDC.
The aim of the experiment was to test how the central bank’s digital currency would react with its bond market. The project also tested the usefulness of such a digital token in a number of day-to-day activities, such as paying out trades, issuing new bonds and paying.
IBM CEO Soren Mortensen commented on the CBDC system as follows:
“We are moving quickly to a fundamental change in the market infrastructure after trading. This project went beyond previous blockchain initiatives by successfully testing most CSD and central bank processes while eliminating preliminary steps such as reconciliation between market intermediaries. “
Isabelle Delorme, CEO of Euroclear Finance, said the cooperation between the institutions had been successful. The experiment showed that digital currencies issued by the central bank can safely settle money.
The project also suggests that the EU should act quickly and build a regulatory framework around cryptocurrencies. Without hasty action, the dominance of the European Union would be jeopardized. The international performance of the euro is jeopardized until regulators apply regulatory measures.
Most countries around the world are working on their own version of the digital currency issued by the central bank. Europe is not lagging behind in developing its own digital currencies. What do you think about the near future in the form of CBDC?