The price of Bitcoin is still falling ($32,000), but, indifferent, Banque de France continues its experiments with digital currency (CBDC) and its uses for listed securities.
The week is not looking good for Bitcoin. The price of BTC is down for another day. Its price is now around $32,000. During the last 7 days, the cryptocurrency has lost almost 20%.
The situation in the Bitcoin options and futures market does not favour a return to growth this week. On the contrary, the expiration of several billion dollars of contracts on June 25 would pull the price down.
CBDC tokens issued on the public blockchain
For central banks, many of whose governors have spoken out against BTC, this is no longer the time for commentary on cryptocurrencies. In France, for example, experiments around digital currencies are continuing.
On June 21, the Banque de France announced a new test involving SEBA Bank and “a group of players”. This time, the aim was to settle listed securities via a central bank digital currency.
The operation was successfully completed on June 18. This transaction is part of the experimental program launched in March 2020. However, this payment in CBDCremains a simulation.
As stated by the Banque de France, the objective was to “simulate the settlement of listed securities and thus trigger their delivery in TARGET2-Securities (T2S), in a test environment”. The participation of the central bank consisted in simulating the issuance of tokens on a public blockchain.
Other tests before the decision of the ECB
The nature of this public blockchain is not specified. Previous tests have been conducted on Tezos and Ethereum. Note that for these experiments was developed and deployed a “dedicated smart contract”.
Its use allows the central bank to preserve the control and confidentiality of transactions. However, a digital currency issue in euros is still not a reality.
The successful experiment is nevertheless further proof of feasibility. It demonstrates “the possibilities of interaction between conventional and distributed infrastructures,” emphasizes Nathalie Aufauvre, Director General of Financial Stability and Operations at the Banque de France.
Other tests are planned until mid-2021. These should contribute “to the Eurosystem’s more global reflection on the interest of a CBDC. “The ECB will soon decide whether or not to pursue the development of a digital euro.
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