Banque de France, HSBC and technology firm IBM have successfully completed an experiment to conduct interbank settlements in government cryptocurrency when issuing digital bonds.
The Bank of France was the initiator and chief curator of the project, which continued a series of experiments with the state cryptocurrency. At this stage, the largest banking conglomerate HSBC and technology firm IBM, a leading provider of consulting services and technologies for the financial industry, were attracted to the program to explore the potential of the digital euro. IBM and HSBC were included in the Bank of France diversification initiative.
The experiment consisted in the issuance of digital bonds on the blockchain with settlements in the state cryptocurrency. During the experiment, the life cycle of digital asset transactions was successfully tested – from issue to coupon payment with conversion into another currency. The transactions took place in a variety of blockchain environments operated by HSBC and the Banque de France. Nathalie Aufauvre, Director of Financial Stability and Operations at the Central Bank of France, said:
“Interoperability between platforms is a key element to maximize the benefits of distributed ledger technology in financial markets. By achieving the transfer of data and assets, as well as the exchange of assets between different blockchains in an atomic manner, Banque de France and HSBC have demonstrated the possibility of such interoperability. ”
The Banque de France and the National Bank of Switzerland announced the launch of a pilot project, Project Jura, to test government digital currencies for international payments in June this year. This month, the Central Bank of France, the Swiss Innovation Center and the National Bank of Switzerland have successfully completed testing of cross-border payments in digital euros and Swiss francs.
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