France’s Central Bank announces successful digital currency experiment
On December 17, 2020, the Banque de France successfully conducted a central bank digital currency (MNBC) experiment with the company IZNES the first Pan European platform for investing in UCI units and record kepping on blockchain, as part of the experimentation program launched in March .
The experiment consisted of the subscription and redemption by investors of monetary fund shares on a private blockchain , provided by SETL, for a total amount greater than 2 million euros. Cash settlements were simulated by central bank digital currency issued on the blockchain .
From a technological point of view, the experimentation required the development and deployment of smart contractsso that the Banque de France can issue and control the circulation of MNBC tokens and that their transfer takes place simultaneously with the delivery of the fund share tokens in the investors’ portfolio. All of these operations were carried out in collaboration with IZNES, SETL, CACEIS, CITIGROUP, GROUPAMA AM, OFI AM and DXC.
This experiment constitutes a significant advance in the evaluation of the levers that a central bank digital currency provides for strengthening the efficiency and resilience of the settlement of financial assets in a blockchain environment , and thus contribute to the proper functioning of the real economy.
The other experiments of the program are in progress until mid-2021 and all the lessons will be an important element of the contribution of the Banque de France to the more global reflection of the Eurosystem on the interest of an MNBC.
