French and Swiss central banks announced the success of the digital test of the euro and the Swiss franc

On Wednesday, the Banque de France (BdF) announced, Innovation Center of Bahrain International Bank (BISIH) and Swiss National Bank (SNB) announced Successful pilot test of a wholesale central bank digital currency (wCBDC) entitled Project Jura. The project aims to investigate cross-border settlement with wCBDC in euros and Swiss francs, and was launched on a third-party distributed ledger technology platform.

The experimental technology explored in the Jura project first consisted of a decentralized network of peer-to-peer computing (Corda) nodes to validate transactions while, at the same time, ensuring that all countries’ legal, regulatory and commercial standards were met. . Later, There was a token for the aforementioned fiat currencies and the European tradable paper, which is a debt instrument with a short-term maturity (one year or less) denominated in euros.. Finally, Project Jura examined infrastructure networks that enable real-time aggregate transaction settlement, bond digitization, and digital asset registry.

Although the test was successful, it does not guarantee wCBDC version by the Swiss, the French, or European Union. The report concluded that “WCBDCs could be incorporated into new settlement arrangements that could change the structure and functioning of capital markets, money markets, and currency markets,” saying:

“Expanding the use of central bank funds through broader access or greater settlement across borders could catalyze these changes, as well as lead to deeper integration of currencies with other digital assets and securities.”

Experimental architecture for the EUR/CHF digital pair | Source: BISIH

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