ConsenSys to Provide the Tech in Building a new CBDC for French Bank
ConsenSys has released an announcement that Societe Generale — Forge, a French bank, has decided to utilize the blockchain technology company’s services to power a CBDC pilot. The Banque de France has commissioned the investment bank amongst seven other banks/firms to experiment on a new CBDC. France has been in high gear to find a solution or innovation for interbank settlement.
ConsenSys and Societe Generale — Forge
ConsenSys is an Ethereum software incubator that will help facilitate the CBDC issuance.
It is mostly known for its services on the Ethereum network such as Infura and MetaMask. However, the blockchain company also has experience working on CBDCs. For instance, it had previously partnered in an interbank system on Project Khokha conducted together with the South African Reserve Bank. ConsenSys also partnered with the Monetary Authority of Singapore on a tokenized Singaporean dollar settlement.
In a statement by Ken Timsit, ConsenSys’s global head of enterprise solutions,
“We have high regard for the accomplishments of Societe Generale – Forge and are proud to be working with them. ConsenSys is committed to advances in the CBDC space and has assisted six central banks around the world on CBDC projects.”
Societe Generale — Forge gained the position after a test on the digital euro, which was carried out in May. They then qualified amongst the other seven partners to participate in the CBDC test in July.
The French central bank is among the first that will try to find interbank settlement using the digital payment system. After all, it runs the second-largest economy in the European Union region.
Before the partnership, Societe Generale — Forge had carried out its own CBDC trials, such as the pilot on the Tezos public chain.
Is CBDC the Way to Go?
Banque de France has set the pace for the digital euro in terms of developing cross border payments. Other countries are also coming on board the digital currency benefits. Amongst them include; Estonia and Spain.
The European Central Bank is researching and holding public consultations on the theoretical digital euro benefits and drawbacks. Society Generale — Forge, together with seven other companies, is involved only in the French CBDC experiment. Also included are Accenture and HSBC. The results of the research may answer the question.
However, Societe Generale — Forge CEO Jean-Marc Stenger expressed confidence in software company ConsenSys, stating:
“We are pleased to partner with ConsenSys, a company who is a key player in the development of distributed ledger technology globally and offers many of the infrastructure and development tools used by the blockchain community.”