In order to investigate interbank liquidity management and digital securities settlement, Societe Generale and Banque de France have concluded a blockchain-based CBDC repo transaction.
On Friday, Societe Generale declared that it had successfully finished a test repo transaction on the Ethereum blockchain using Central Bank Digital Currency (CBDC) issued by the Banque de France.
🆕 Societe Generale announces the successful completion of a collateralized market transaction fully executed on blockchain with the@banquedefrance
— Societe Generale Group (@SocieteGenerale) December 13, 2024
📷 Executed thanks to Societe Generale – FORGE's technological capabilities, it is the first repo transaction in digital securities… pic.twitter.com/HmH6IqyNaA
According to a press release from Societe Generale, the operation involved bonds issued on the Ethereum blockchain, used as collateral in exchange for CBDC issued on the Banque de France’s proprietary blockchain.
SG-FORGE and Societe Generale Lead the CBDC Repo Transaction
While the Banque de France issued CBDC on its DL3S blockchain platform, the repo transaction used Ethereum-issued bonds as collateral.
The direct exchange of digital securities and digital currency issued by central banks was made possible by this arrangement.
The procedure evaluated how well blockchain technology could support interbank refinance.
The transaction investigated efficiency in liquidity management and settlement procedures by using blockchain technology to handle both securities and currency.
The transaction was carried out by SG-FORGE, a subsidiary of Societe Generale.
The unit contributed technical expertise to integrate blockchain-based assets with conventional banking frameworks and specializes in digital asset operations.
The technical viability of interbank refinance operations conducted directly on blockchain is demonstrated by this transaction. According to the release, it demonstrates how a central bank digital currency could increase the liquidity of digital financial securities.
Kyrgyzstan Passes Digital Som Framework
Kyrgyzstan has advanced its CBDC initiative by passing a draft law that establishes the framework for the digital som.
🇰🇬 Kyrgyzstan is one step closer to launching the digital som! Parliament has approved a draft law defining its framework, paving the way for this central bank digital currency.#DigitalSom #Kyrgyzstanhttps://t.co/mpjwrJYHQS
— Cryptonews.com (@cryptonews) December 11, 2024
Approved in its first reading, the law establishes the conditions for prototype testing in early 2025 and gives the digital som legal tender status.
Through a centralized platform, the National Bank of Kyrgyzstan will oversee the digital som’s issuance, accounting, and distribution, guaranteeing its efficiency and security while retaining central authority over the currency.
The focus of Kyrgyzstan’s approach is centralized management that is customized to the nation’s unique financial infrastructure, in contrast to other CBDC projects that mainly rely on blockchain.
The framework does not specifically rely on blockchain technology, even though it might incorporate features like smart contracts.