Central Banks of France and Switzerland will test state digital currencies

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The Bank of France and the National Bank of Switzerland have announced the launch of a pilot project, Project Jura, to test government digital currencies for international payments.

The Swiss Central Bank said it will also cooperate on this issue with the Center for Innovation of the Bank for International Settlements (BIS) and a consortium led by consulting firm Accenture.

The consortium includes banks Credit Suisse, UBS and Natixis, as well as companies R3 and SIX Digital Exchange. As part of the Project Jura initiative, they will conduct international settlements with the digital euro and digital currency of the Swiss central bank using a special platform using distributed ledger technology (DLT).

Banks will carry out delivery versus payment (DVP) transactions to exchange the digital currency of the Banque de France for the wholesale digital euro. The digital euro will then be exchanged for the wholesale digital Swiss franc using a similar method. Such settlements will also be made between banks located in France and Switzerland.

Recall that in May last year, the Central Bank of France and the Societe Generale bank already tested the digital euro to identify its potential risks and benefits for institutional investors.

The Swiss government has previously stated that the digital Swiss franc carries more risks than benefits. However, given that other central banks are actively exploring the possibility of introducing their own digital currencies, the Bank of Switzerland is also ready to conduct additional experiments with state cryptocurrencies.

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