Bank of France and Swiss Crypto Bank Test Securities Settlement With CBDC

The Bank of France has successfully completed an experiment using a CBDC to close listed securities. The test was carried out with the help of an alliance of partners led by SEBA Bank, a digital asset banking provider in the Swiss crypto valley. Central Bank and Crypto Company Conduct Successful CBDC Test The Bank of France announced that as part of a program launched in March 2020, a central bank digital currency (CBDC) is used to simulate the exchange of exchange-traded securities. Press release released on Monday. On June 18, the regulator simulated the issuance of CBDC tokens on a public blockchain while maintaining control over transactions. The bank announced the development and implementation of a custom smart contract, and Eurosystem's Target2-Securities (T2S) was used as the delivery platform. All operations were conducted in partnership with SEBA Bank AG, a Swiss-licensed digital asset banking provider, Banque Internationale à Luxembourg, the oldest multi-business bank in the Grand Duchy, and LuxCSD, a central securities depository. In a separate announcement, SEBA explained that the confidentiality of processed transactions is ensured through a protocol that uses zero-knowledge proofs to encrypt and hide the values of CBDC transactions via a public blockchain. The crypto bank said that participants have successfully demonstrated that distributed ledger technologies can communicate with T2S for the exchange of listed securities. Nathalie Aufauvre, BOF's Managing Director of Financial Stability and Operations, noted that the experiment demonstrates the possibilities opened up by the interaction between traditional and distributed infrastructures. He emphasized that the test paves the way for other alliances that aim to capitalize on the opportunities that financial assets offer in the blockchain environment. Bank of France continues further CBDC work Different test plan

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