The French state bank, Caisse des Dépôts, has made a significant move in digital finance by issuing a €100 million ($108 million) digital bond. This transaction was settled using the pilot wholesale central bank digital currency (wCBDC) of France.

A Breakthrough in Digital Bonds with Blockchain Technology

The digital bonds were issued on the Euroclear Digital Financial Market Infrastructure (D-FMI) platform. This platform enables the issuance, distribution, and settlement of bonds using distributed ledger technology (DLT). Unlike traditional methods requiring several days, Euroclear facilitates settlement within a single day.

The bonds utilized Banque de France's DL3S system, a wholesale CBDC platform testing the interoperability of digital currencies with existing financial systems. Major French financial institutions, including Crédit Agricole and Natixis, participated in the issuance, with BNP Paribas serving as the issuing and paying agent.

Caisse des Dépôts Supports Financial Sector Innovation

Nathalie Tubiana, Head of Financial Policy at Caisse des Dépôts, stated that the bank joined the project to support innovation in the capital market sector. This initiative places France at the forefront of CBDC adoption.

Other major banks, such as UBS, HSBC, and Société Générale, are also experimenting with digital bonds. For instance, HSBC issued $130 million worth of bonds in Hong Kong under English law.

Norwegian Central Bank Explores CBDC

Meanwhile, the Norwegian central bank continues to explore the use of CBDC, particularly for cross-border payments. While the bank has yet to decide on issuing a digital krone, it emphasized that CBDC should complement cash and digital currencies rather than replace them.

According to Kjetil Watne of Norges Bank, it will be crucial to balance privacy protection with compliance with laws such as anti-money laundering (AML) and know-your-customer (KYC) regulations.

European MiCA Regulation in Norway

Norway plans to implement the European Markets in Crypto-Assets (MiCA) framework, approved by the European Parliament. MiCA allows countries to tailor rules to their needs, and Norway plans to introduce additional regulations to protect investors.

This development highlights how both France and Norway are seeking innovative ways to adapt their financial systems to the digital age, focusing on efficiency, security, and regulation.


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