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France Completes Pilot CBDC For Interbank Settlement

Central bank digital currency was one of the most talked-about developments in the crypto space last year, with the DeFi boom coming close in second place. Several other countries made their intentions to create their respective CBDCs known after China came forward early last year.

Even though China is leading other countries in the development and subsequent launch of digital currency, other countries are not faltering when it comes to the research, launch, and creation of their respective digital currency.

As it looks now, the more good news is coming out of the respective countries planning to launch their CBDC as France has recently announced that the pilot for its digital currency, which would be used for settlements within its financial system, has gone live.

The pilot test was carried out with the backing of several entities

In the statement that was released by the premier financial house in the country, Le Banque de France, the pilot program was completed through the aid of IZNES. This firm completed all the stages and phases of development to bring to life their idea of a pilot digital currency that would be used amongst banks in the country to make internal transactions. The statement further mentioned that about €2 million was used to make transactions as the premier bank tested the tokenized shares.

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The blockchain network was used to make transactions in a simulated system to that of physical cash. The bank had to use several smart contracts, which would allow them to create and control all the developed digital currency that would be in circulation. Even though the French nation birthed the idea in the late part of last year, they witnessed several backing from entities across the country, including IZNES, DXC, Citigroup, and others.

The French government set to roll out new crypto laws across the country

Despite France showcasing bright sparks when it comes to digital currency, the country has once again announced that it would roll out a new set of rules that would check crypto activities across the country. Even though some rules were delivered on and agreed on last year, the French government still wants to roll out the new laws that will be in place, pending the digital currency’s launch.

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In a statement by the Chief of crypto association across France, Simon Poirot, the Finance Ministry is set to sign new laws into power in the coming days, which would see to it that all crypto-related entities follow several laid down rules. The new law would seek to address various shortcomings in terms of its Know your customer rule and monitor several private and public entities involved in crypto trading.

In the new law that would be established, several news outlets have noted that the country will announce that a trader cannot carry out a trade on a crypto exchange without first completing various customer-related forms and verification. This means that crypto exchanges across the country will have to verify users’ identities on their platforms before being allowed to carry out any volume of transactions on the respective platforms.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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