The Bank of France and the Monetary Authority of Singapore (MAS) conducted the first test international government cryptocurrency transaction on the Quorum blockchain.
The transaction was the first to use an automated liquidity pool based on smart contracts for the EUR / SGD digital currency pair. Testing was done using a managed version of the Ethereum blockchain called Quorum, developed by JPMorgan. Recall that last summer, the company ConsenSys, which is working on the development of the Ethereum ecosystem, bought the Quorum platform from JPMorgan Chase.
In the context of wholesale or interbank transactions of government cryptocurrencies, fast and cheap cross-border payments are the main goal of central banks. According to the Banque de France, the reduction in the number of intermediaries has reduced the number of contracts and made it easier to comply with KYC rules.
The automated government cryptocurrency liquidity pool and market maker services for EUR / SGD currency pairs can be expanded to support the participation of multiple central and commercial banks in different jurisdictions. The use of smart contracts allows automatic management of the EUR / SGD exchange rate in accordance with market transactions and requirements in real time.
Recall that recently the Bank of France announced that it tested the state cryptocurrency with a number of investment banks, including BNP Paribas and the Euroclear settlement center. In June, the Bank of France and the National Bank of Switzerland announced the launch of an experimental project, Project Jura, to test government cryptocurrencies for international payments.
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