The financial authorities of France and Singapore are exploring international applications of central bank digital currencies (CBDC).
The Bank of France and the Monetary Authority of Singapore (MAS) announced on Thursday that they have successfully completed an international payment using CBDC and blockchain technology.
The CBDC experiment was conducted on a permission-based and privacy blockchain that leverages investment bank Quorum’s blockchain infrastructure, with the support and experience of JPMorgan’s digital currency-focused unit Onyx.
As part of the experiment, the Bank of France and MAS simulated international payment and inter-currency transactions with Singapore dollar-based CBDC and euro.
“Although the experiment was limited between the two central banks, the design of the m-CBDC (multiple CBDCs) network allowed it to grow large enough to support the participation of many central and commercial banks from different countries,” the announcement said.
The pilot CBDC transaction also showed interoperability between different types of cloud infrastructures, with blockchain nodes deployed in private and public cloud infrastructures in France and Singapore. The Bank of France has announced that the experiment in question is one of the latest achievements of the major experimental program expected to be completed in autumn 2021.
Sopnendu Mohanty, President of MAS Fintech, stated that the new development will enable financial institutions in different countries to “do not directly transact with each other in different currencies”. “The M-CBDC experiment broke ground by decentralizing financial infrastructure to improve liquidity management and market maker services.”