The Banque de France (BdF) has announced the completion of a wholesale cross-border payment and settlement experiment using central bank digital currency (CBDC) with the Monetary Authority of Singapore (MAS). BdF says the experiment was conducted on JPMorgan's blockchain network called Onyx.
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"This experiment is one of the last of the Banque de France wholesale experiment program, which will be achieved by fall 2021, and is the first m-CBDC experiment that applied automated market making and liquidity management capabilities to reap cross-border payment and settlement efficiencies," BdF said.
In the experiment, the financial institutions simulated cross-border transactions with Singapore Dollar (SGD) CBDC and €uro (EUR) CBDC. BdF the technology behind CBDCs offers "great potential" for the banking industry as it is simplifies integration and improves cost efficiencies.
Previously in June, the French central bank also completed a CBDC experiment with a Swiss bank SEBA Bank. The goal of the experiment was to simulate the settlement of listed securities. Banque de France says it simulated CBDC issuance on a public blockchain network by "preserving control and confidentiality of transactions," with the help of smart contracts.
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