Societe Generale and Bank of France Complete CBDC Transaction
Societe Generale announced on Friday that it had completed a test repo transaction using a Central Bank Digital Currency (CBDC) issued by the Banque de France, conducted on the Ethereum blockchain.
🆕 Societe Generale announces the successful completion of a collateralized market transaction fully executed on blockchain with the@banquedefrance
đź“· Executed thanks to Societe Generale – FORGE's technological capabilities, it is the first repo transaction in digital securities… pic.twitter.com/HmH6IqyNaA
— Societe Generale Group (@SocieteGenerale) December 13, 2024
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
The repo transaction utilized bonds issued on Ethereum as collateral, while the Banque de France issued CBDC on its DL3S blockchain platform.
This setup allowed for the direct exchange of digital securities and central bank digital currency.
The process tested the potential of blockchain technology to facilitate interbank refinancing.
By handling both securities and currency on blockchain, the transaction explored efficiencies in liquidity management and settlement processes.
Societe Generale’s subsidiary, SG-FORGE, was responsible for executing the transaction.
The unit specializes in digital asset operations and contributed technical expertise to integrate blockchain-based assets with traditional banking frameworks.
“This transaction demonstrates the technical feasibility of interbank refinancing operations directly on blockchain. It illustrates the potential of a Central Bank Digital Currency to improve the liquidity of digital financial securities,” the release reads.
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
The legislation, approved in its first reading, grants the digital som legal tender status and sets the stage for prototype testing in early 2025.
The National Bank of Kyrgyzstan will manage the issuance, accounting, and distribution of the digital som through a centralized platform, ensuring security and efficiency, and maintaining central control over the currency.
Unlike other CBDC projects that heavily rely on blockchain, Kyrgyzstan’s approach emphasizes centralized management tailored to the country’s specific financial infrastructure.
While the framework may integrate features like smart contracts, it avoids an explicit dependence on blockchain technology.
Source: cryptonews.com
