As part of a collaboration, the Banque de France and Societe have settled bonds worth 40 million euros as security tokens in digital euros.
The Bank of France announced a successful test of its blockchain-based digital currency.
A press release announces that it is a joint product of two companies. On the one hand, the central bank Banque de France and its partner Societe General on the other. The last one is among the largest investment banks in the country.
It is said that Societe Generale has successfully used the platform to issue bonds, which were issued as security tokens and settled in digital euros.
This was the first attempt to issue and settle the tokens using blockchain technology.
The investment bank issued covered bonds in the amount of €40 million (equivalent to approximately $44 million). Societe Generale adds in a recent statement that the tests were conducted exclusively using blockchain infrastructure. The tests are a demonstration of the „feasibility of digital settlement and delivery of financial products in a digital central bank currency (CBDC) …“.
The said transaction was preceded by a 100 million euro issue based on the same blockchain infrastructure. This took place in the previous year and was carried out via the Ethereum blockchain.
From the investment bank’s point of view, the transaction marks „a new stage of development of the Societe Generale Forge platform“. The company said that „Forge“ is a project to promote new market activities based on the blockchain.
In its own view, the central bank sees the success of the activities as a „new step“ to further improve in-house services through innovative technologies.
The French central bank assures that further tests and experiments will follow in the coming weeks. New businesses are to be involved in these tests and experiments. The experiments are also to be „based on documents“, which indicate the need for tests on the feasibility of issuing and using digital euros to promote current interbank regulations.