France’s central bank has executed a series of bond transactions leveraging blockchain using its own digital currency as part of a 10-month pilot.
The Banque de France, along with a group of France’s largest financial market participants, executed the transactions using a system developed by U.S.-based IBM, according to a statement from securities depository Euroclear.
Nearly 500 instructions in both primary and secondary markets were executed, though the value of the transactions was not disclosed in a report published on Euroclear’s website.
BNP Paribas, Crédit Agricole CIB, HSBC and Societe Generale made up the consortium.
Led by Euroclear, the pilot also included large French banks as well as the French public debt office, per the report.
Earlier this year, the Banque de France published a request for proposals for central bank digital currency (CBDC) “experiment” applications in a bid to help it understand the risks and mechanisms of CBDCs. The bank has also engaged in a number of experiments using a CBDC for the wholesale market and cross-border payments as well as interbank settlements.
China is currently the largest economy leading the charge with the implementation of a CBDC for use within its domestic market and plans to extend its CBDC trials to foreigners visiting the nation during next year’s Winter Olympics, to be held in Beijing.
“This project went well beyond previous blockchain initiatives because it successfully tested most central securities depository and central bank processes whilst eliminating current interim steps, such as reconciliation between market intermediaries,” said Soren Mortensen, global director of financial markets at IBM, as cited in the report. “We are rapidly moving towards fundamental change in the post-trade market infrastructure.”
UPDATE (OCT. 19, 9:16 UTC): Changes sourcing to Euroclear, adds link to report.
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