Top financial institutions alongside two blockchain firms have teamed up to consider the implications of developing an inter-bank digital currency.
The partnership involving BNP Paribas (the world’s eighth-largest bank by assets), CA CIB, Caisse des Dépôts, Tokeny, and The Blockchain XDEV, will explore how financial institutions can conduct transactions using digital currencies.
According to yesterday’s announcement, the pilot project will be launched on both Tezos and Ethereum blockchain, and it is scheduled to be completed by next year.
“Participants [of the project] will particularly consider the implications of ‘atomic’ delivery-versus-payment settlement of tokens or regulated securities exchanged on a blockchain – where security tokens and the cash tokens exist on the same ledger,” the announcement reads.
Notably, the project will also explore the operational impact of developing an interbank digital currency, as well as the execution of several experiments for the new payment method.
Furthermore, the experiment will be conducted under the European Union’s regulatory purview and will be in line with the region’s Central Bank Digital Currency (CBDC) research project.
Recalled that the EU recently weighed in on the possibility of issuing a CBDC for the eurozone, prompting several countries in the region, including France, Spain, and Estonia, to work toward developing a digital Euro.
Tezos And Ethereum Gets Deserved Recognition
The enticing features and services hosted on both blockchains have not gone unnoticed, as they continuously get the deserved recognition, which has led to their selection for reputable projects.
In mid-September, Tezos was selected by one of the developers of the France CBDC experiment, Societe Generale – Forge, as the technology that will power the project.
The move also saw Societe Generale – Forge collaborate with several tech providers and advisors, including Nomadic Labs, one of Tezos’ biggest research and development centers, to tap their expertise in developing the digital euro.
A month later, Societe Generale – Forge announced the addition of Ethereum software company ConsenSys to its list of partners for the project.
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