Victor Ugochukwu · Dec 14, 2020 . 5min read
For Trialing CBDC’s in France Societe Generale-Forge Chooses Tezos Blockchain
Societe Generale Forge has announced that it selected Tezos blockchain network for testing central bank digital currency (CBDC).
By Komal Joshi · Sep 17, 2020 . 6min read
France plans to develop its central bank digital currency (CBDC) on the Tezos blockchain. On Sept. 15, Societe Generale Forge chose Tezos blockchain to build a Euro-pegged stablecoin for France’s Central Bank, Banque de France. A major Tezos development firm, Nomadic Labs, will also contribute its technological expertise to the project. France previously elected eight potential partners for its CBDC project. The potential partners include Accenture, Euroclear, HSBC, Iznes, LiquidShare, ProsperUS, Societe Generale-Forge, and Seba Bank.
The Tezos Blockchain has roots in France with a French founder and French development teams. It even uses a programming language created in France, OCaml. Societe Generale already has a track record with the Banque de France and CBDC. Four months ago, the bank operated with Societe Generale Forge on €40 million of covered bonds on a public blockchain. Additionally, Societe Generale Forge had earlier issued €100 million of security tokens on the Ethereum blockchain, but not using a CBDC.
Characteristics Possessed by Tezos
The declaration states that various Tezos’ features pumped into the decision. The contributing factors include the blockchain’s on-chain governance, proof-of-stake consensus model, and formally verified smart contracts. It is not apparent how SGF intends to use those abilities. However, it says that those characteristics make Tezos a model for high-value financial applications.
Tezos is a public blockchain. It is a sort of blockchain rarely used in central bank digital currency efforts. Instead, most CBDC’s are developed on permission enterprise blockchain or other digital ledgers with only a fleeting resemblance to the blockchain. Apart from France, Ukraine seems to be adopting Tezos as the basis for its central bank digital currency.
Other CBDC Projects
Earlier, Mastercard declared that it is launching a proprietary virtual testing environment for central banks to assess CBDC use cases and test roll-out strategies. The platform promotes the simulation of issuance, distribution, exchange of CBDC’s between banks, financial service providers, and consumers.
Additionally, the Bank of Jamaica has openly supported the interest in the selection of a state-owned virtual currency. It further emphasized its compliance by summoning tech solutions providers to test and develop potential solutions for its CBDC established in Fin-tech Regulatory Sandbox. The Central Bank is enthusiastic about trialing its CBDC before introducing it into the Jamaican economy in order to perceive its viability.
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