According to a May 20 announcement by the Bank of France, France has become the first country to successfully test a digital euro, operational in a blockchain, after a call for new technologies to support such a development at the end of March.
The bank says it tested a sale of securities for the central bank’s digital currency (CBDC) on May 14, signaling the beginning of more robust testing.
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A wholesale rather than retail CBDC
Although the bank’s announcement did not go into detail, it did indicate that the current pilot programme focuses on wholesale rather than retail uses for a digital euro. Retail came down hard, unveiled earlier this year, a complex area for, business was great, filed in january, checkpoint on the network, used bitcoin to fund activities, rattled hyperledger participants, alternative trading system, doesn’t believe the decentralized web would operate open to regular consumers in the form of Bitcoin or Apple Pay.
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A wholesale CDB would be in the realm of banks and institutional players, as the French central bank says, „inter-bank regulations“.
This recent pilot of a securities issue in exchange for one digital euro was based on the software received after the bank’s call for applications on 27th March. According to today’s announcement the bank will spend the next few weeks running similar tests on other files received as part of the same initiative.
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France and the drive for a digital euro
The Bank of France is known to be particularly active in the development of a digital euro. Pending the departure of the United Kingdom, France will become the second largest economy in the euro area after Germany.