Bank of France tests CBDC in government bond transactions

The Central Bank of France has executed a series of bond transactions leveraging blockchain using its CBDC as part of a 10-month pilot.

The Central Bank of France and a group of financial market participants conducted nearly 500 instructions in the primary and secondary markets of government bonds using the central bank digital currency (CBDC) over ten months.

According to a statement from securities depository Euroclear, as part of the experiment, the bank used a system developed by U.S.-based IBM. The volume of transactions was not disclosed.

Participants in the pilot project led by Euroclear clearing house include BNP Paribas, Crédit Agricole CIB, HSBC, Societe Generale and the French Ministry of Economy and Finance.

The participants in the experiment confirmed that the developed solution will eliminate the need for reconciliation of accounts and thereby increase the efficiency of capital markets.

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