Bank of France successfully processed €2 million in CBDC pilot phase

The Bank of France successfully process €2 million worth of funds using a Central Bank Digital Currency or CBDC in December.

According to Le Banque de France, the pilot program commenced on December 17 and €2 million euros ($2.4 million dollars) worth of simulated shares were purchased and sold by investors using central bank digital currency.

This was part of a pilot program in December last year to experiment Central Bank Digital Currency or CBDC.

The pilot program was executed in partnership with UK based distributed ledger technology (DLT) provider, SETL. While IZNEZ, a record-keeping platform developed by SETL was used to track the fund unit movements.

CBDCs have continued to be an area of interests for central banks in order to stay ahead of private and decentralized blockchain firms issuing stablecoins. On Jan. 15, Chairman of the United States Federal Reserve, Jerome Powell, told interviewers on Yahoo Finance that the creation of CBDCs was a “high priority”, and necessary to combat the spread of what he termed “bad private sector money”.

Central bank digital currency or CBDCs are issued by a central bank and are overseen by the bank unlike stablecoins like DAI that are managed by DAOs or USD Tether that are issued and managed by private companies.

China has been at the fore front of issuing a CBDC, last week the Agricultural Bank of China ran ATM trials for its digital yaun in the Shenzhen region. China may be the first to roll out a central bank digital currency according to pundits.

On Tuesday the Bank of France in a statement said:

From a technological point of view, the experiment required the development and deployment of smart contracts so that the Banque de France can issue and control the circulation of CBDC tokens and that their transfer takes place simultaneously with the delivery of the tokens of fund shares in the investors’ portfolio.