Written by: FIMA Plus
Announcing the news last Wednesday, the Banque de France reported that they have launched an experiment with investment banking giant Societe Generale, which on May 14 issued bonds worth 40 million euros (~ 44 million USD) in security tokens, which were then settled in blockchain-based digital euros from the central bank.
– This experiment was conducted using blockchain infrastructure. The testing demonstrated the feasibility of a process that allows financial securities to be digitally settled and delivered in central bank digital currency (CBDC) for interbank settlements – stated Societe Generale.
In April 2018, Societe Generale also issued bonds worth 100 million euros (~ 110 million dollars) as security tokens, but they were settled in „traditional“ euros. The latest trial transaction conducted in digital euros is a "new step in the transformation process of Societe Generale, utilizing the most innovative technology aimed at providing better service to its clients," the bank said.
From the French central bank, it was announced that as part of their experiments with the digital euro, they will conduct further testing with other firms in the coming weeks and that they believe the results of this experiment will represent an important contribution to a more global reflection on CBDCs.
The Banque de France launched its digital experimental program in April, when they stated that their goal is to explore the potential of digital currency in settling tokenized financial assets. However, they also stated that they do not wish to replace coins and banknotes, but are focused on „wholesale“ application of CBDCs.
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