Blockchain: Banque de France advances in its “digital euro” tests

The Banque de France announced Wednesday that it has successfully passed its first test of using “central bank digital currency” via the blockchain, this experiment aimed at improving interbank regulations and ultimately launching a “digital euro”.

The Banque de France has just “successfully tested on May 14 the use of a blockchain developed by its teams to experiment with the use of a central bank digital currency”, welcomes the financial institution in a press release.

The operation made it possible to “settle an issue of digital financial securities carried out by Société Générale Forge”, it is specified.

The Banque de France will continue these experiments, started since the beginning of the year, “in cooperation with other actors”, on the basis of the files of a call for candidates launched at the end of March, this time to test “usage of a central bank digital euro in interbank regulations “.

The institution said it had received a “high number” of applications testifying to “the interest of the banking and financial industry for these experiments and the dynamism of the Place de Paris in terms of technological innovations in the financial sector”.

The results of these experiments will contribute “to the more global reflection led by the Eurosystem on the interest” of a digital central bank currency.

Last December, in response to private initiatives like that of Facebook, the Banque de France announced it would eventually create a “digital euro”, that is to say in electronic form. Its emission and transfer mechanism could be based on blockchain technology (blockchains), on which virtual currencies like the already rely. bitcoin.

This technology is similar to a digital and forgery-proof ledger where each exchange between the holders of a “token” (or “digital token”) is recorded. Its advantage is notably to limit intermediaries by allowing secure sharing, and to allow information to flow more quickly.

Ultimately, it saves time and costs by doing without the traditional trusted intermediaries but could also allow the exchange of assets for legal tender.

The emergence of a central bank electronic currency would also allow Europe to “have a powerful lever for asserting our sovereignty in the face of private initiatives of the Libra type”, François Villeroy de Galhau, governor of the Bank of France.

cgu / ak / eb