French central bank has successfully completed a full settlement cycle with CBDC

The Central Bank of France said on Tuesday it has successfully conducted the first transaction under the CBDC pilot project.

The Banque de France ran a full settlement cycle with London-based payments infrastructure provider SETL. SETL provided the infrastructure based on a distributed ledger and organised the transactions, financialmagnates.com reports.

During the experiment, Banque de France simulated a EUR 2 million Bitcoin Optimizer remittance using CBDC. This was done by first issuing and then redeeming Groupama Enterprises‘ money market shares. Partners from Citi and CACEIS secured the funds.

The French central bank has been developing its own cryptocurrency for some time and even tested it under real conditions with Société Générale. Seven key partners have even been identified for the project, including IZNES, ID2S and SETL.

As a reminder, the IMF recently expressed the view that the launch of CBDC would be a major legal challenge for many central banks. Meanwhile, the Fed is talking about the possible launch of the digital dollar in a few years at the earliest, while China is already building an international payment system with integration of national cryptocurrencies.