What to know:
- SocGen’s SG-Forge subsidiary carried out a repo transaction with Banque de France.
- SG-Forge deposited some bonds issued in 2020 on the Ethereum blockchain as collateral in exchange for CBDC issued by the central bank on its DL3S blockchain.
As a seasoned crypto investor with a knack for staying ahead of the curve, I must say this latest development between Societe Generale and Banque de France has piqued my interest. Having witnessed the evolution of blockchain technology and its potential applications firsthand, I find myself increasingly optimistic about the future of digital currencies.
Society General announced that it executed a blockchain-facilitated repo agreement with the Bank of France, which they described as the initial such tokenized transaction involving a Eurozone central bank.
In a recent statement, SG-Forge, a digital assets-focused subsidiary of the lender, secured Central Bank Digital Currency (CBDC) from the Banque de France by depositing 2020 bonds on the Ethereum blockchain as collateral on its DL3S blockchain.
Given that the European Union’s Markets in Crypto Assets (MiCA) regulatory framework is already established for stablecoin issuers, SG-Forge has been actively seeking opportunities to launch its euro stablecoin, EUR CoinVertible (EURCV). Notably, the EURCV was not part of a repo transaction.
In simpler terms, the Bank of France is actively exploring the practicality of Central Bank Digital Currencies (CBDCs) on a large scale, particularly for enhancing operations like cross-border payments and ensuring the finality of settlements. Notably, transactions in the form of repurchase agreements (repo) using blockchain technology have emerged as one of the most promising applications of this technology within the banking sector.
This recent operation shows that it’s technically possible for banks to engage in peer-to-peer lending using blockchain technology directly. This trial underscores the potential benefits of a Central Bank Digital Currency in enhancing the liquidity of digital financial assets, according to SocGen’s statement.
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2024-12-13 13:01