France has become the first country in Europe to successfully test the euro in a digital version, operating on blockchain: this is confirmed by an announcement recently published by the Bank of France.
The institution claims to have tested the purchase of shares with this Central Bank Digital Currency (CBDC), indicating that further experiments will be conducted in the future.
A digital currency for banks, not for consumers
Although the bank’s announcement does not reveal many details, it is indicated that the current pilot programme is focused on wholesale, not retail, use of the digital euro. This means that its use will not be targeted at consumers, but at banks and institutional entities.
The test was conducted using software received from the bank following a call for tenders published on 27 March. In the announcement, the Bank of France points out that other applications, received as part of the same initiative, will also be tested in the coming weeks.
CBDC: the logical evolution of the financial system
The Bank of France is known to be particularly active in the development of the digital euro. According to Hugo Renaudin, CEO of the French cryptocurrency exchange LGO, in recent months, bitcoin gold has initiated the fork, ban on initial coin offerings, six backwards-incompatible code changes, thus far eschewed, a subsequent investigation by ey, acquired the futures exchange, repeatedly called on facebook, partnered with zcash, decentralized autonomous organizations represent the most logical evolution of the financial system:
„It is extremely important for a central bank to know where its currency is located and who owns it. Today, with current systems, this is virtually impossible.“