Ethereum and Tezos blockchain have been selected for an experimental project that will explore and develop an Interbank Digital Currency. This is a joint project of Tokeny Solutions and four other French banks. The project is excepted to be completed in 2021.
According to the announcement, this experimental project to develop and explore an interbank digital currency is a joint venture of Caisse des Dépôts—a French investment company, BNP Paribas Group, Crédit Agricole CIB—an investment bank, Tokeny Solutions—a fintech company that drives liquidity for private markets, and The Blockchain XDEV—a subsidiary of the Blockchain Group.
The entities involved in the project have selected Ethereum and Tezos blockchain platforms to test this currency. An announcement from The Blockchain Group, a global organization of engineers and entrepreneurs with the end mission to create a blockchain-powered ecosystem, reads:
“The project will explore how financial transactions involving digital assets can be settled on platforms initially using Ethereum and Tezos technologies. Participants will particularly consider the implications of ‘atomic’ delivery-versus-payment settlement of tokens or regulated securities exchanged on a blockchain – where security tokens and the cash tokens exist on the same ledger.”
The Blockchain Group said that all stakeholders would take into account the operational impacts of this technology. This project will conduct several experiments “to validate the technological interoperability of such a tool in a multi-technology context, both on public or private blockchains and the regulatory impacts in a daily situation of multi-currency and multi-actor transactions in financial markets.”
The announcement further notes that in order to not get angry with the regulators, all participants will work in compliance with the regulations and that these actors will also contribute to the exploratory work in progress of the EU in the field of the digitization of financial assets.
Furthermore, partners in this project will also try to onboard the largest possible number of French, European and international players wishing to participate in the construction of infrastructure and its components.
Further details about this project will work is not available yet. But the idea of powering interbank services with blockchain technology is not new. The Central Bank of Argentina (BCRA) has also developed a blockchain-powered clearing system that could be used by some of the country’s largest financial institutions.
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