French central bank experiments on digital currency with blockchain platform

The Banque de France has successfully performed a central bank digital currency experiment using a private blockchain platform for interbank settlement, the regulator said Jan. 19.

The exercise, which was part of an experimental program launched in March 2020, involved the settlement of more than €2 million on a blockchain platform provided by French investment firm IZNES, while U.K. blockchain company SETL Development Ltd. provided the distributed ledger technology and the infrastructure used in the issuance and redemption of the CBDC tokens created by the central bank.

The experimental transaction involved shares of Groupama Group unit Groupama Asset Management SA's Groupama Enterprises money market fund, which were subscribed and redeemed on the platform using the CBDC tokens. Participating banks CACEIS SA, a unit of Crédit Agricole Group, and Citigroup Inc. purchased the tokens from the central bank. CACEIS also acted as the custodian of the Groupama funds, while OFI Asset Management SA and DXC Technology Company also participated in the trial.

Other experiments under the program will be ongoing until the middle of 2021, the French central bank noted.