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France and Luxembourg complete CBDC trials

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The central banks of France and Luxembourg used an experimental CBDC to settle an original €100 million digital bond.

The so-called Venus Initiative saw a bond issued by the European Investment Bank under Luxembourg law and settled using the central bank’s currency representation symbol in euros.

The European Investment Bank has appointed Goldman Sachs, Santander and Société Générale as bank syndicates for the issuance and distribution of domestic digital bonds.

The bond was issued and registered on a licensed DLT and subscriptions were disbursed using CBDC test tokens issued on a single licensed DLT that is jointly operated by central banks.

Stakeholders are developing and using a reliable mechanism for exchanging messages between DLTs, which includes a hashed and time-locked contract protocol, allowing simultaneous exchange of CBDC beta tokens and their issuance on the same day as the original digital bond.

Nathalie Ouvre, General Director of Financial Stability and Operations at Banque de France, said: “This test shows how digital assets can be issued, distributed and settled within the eurozone in a single day.

The Venus Initiative confirms that a well-designed CBDC can play an important role in developing a safe space for tokenized financial assets in Europe. »

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