The Bank of France has tested a digital currency for interbank payments

The Bank of France announced the successful completion of testing a digital currency for interbank settlements using the Iznes platform based on the blockchain.

According to the Bank of France, as part of a pilot project to test the digital currency, from March to December 2020, transactions totaling about 2 million euros were made.

Payments were made in digital currency using the Iznes platform, developed by the British startup SETL. Insurance group Groupama, financial conglomerate Citigroup, French bank CACEIS, asset manager OFI AM and IT company DXC also took part in the testing.

The experiment was aimed at developing and implementing smart contracts that allow the Bank of France to issue digital currency, control its circulation and conduct settlements between financial organizations.

The Central Bank believes that blockchain will increase the efficiency of international payments and improve the functioning of the real economy of Europe. The Bank of France also said that it will continue to conduct additional experiments under this project until mid-2021.

The regulator needs to understand how the digital currency can improve the conduct of cross-border payments and become accessible to institutional clients. In addition, such experiments will allow you to understand what changes should be made to the legislation.

Recall that in May, the Central Bank of France, along with the bank Societe Generale, successfully tested the digital euro to understand the mechanisms of its operation and identify potential risks.

Earlier, the chairman of the Bank of France, Francois Villeroy de Galhau, said that stablecoins can seriously affect the financial sovereignty of the European Union, so central banks should accelerate the development of state-owned digital currencies.