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On Friday, Societe Generale revealed that it had finalized a test repo transaction utilizing a Central Bank Digital Currency (CBDC) issued by the Banque de France, executed on the Ethereum blockchain.
Societe Generale announces the successful completion of a collateralized market transaction fully executed on blockchain with the @banquedefrance
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
Executed thanks to Societe Generale – FORGE’s technological capabilities, it is the first repo transaction in digital securities… pic.twitter.com/HmH6IqyNaAAs stated in a press release from Societe Generale, the transaction involved bonds issued on the Ethereum blockchain, which were 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 employed bonds issued on Ethereum as collateral, while the Banque de France provided CBDC on its DL3S blockchain platform.
This arrangement enabled the direct exchange of digital securities and central bank digital currency.
The operation assessed the capability of blockchain technology to support interbank refinancing.
By managing both securities and currency on the blockchain, the transaction investigated efficiencies in liquidity management and settlement processes.
Societe Generale’s subsidiary, SG-FORGE, executed the transaction.
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This unit specializes in digital asset operations and offered technical expertise to merge blockchain-based assets with conventional banking systems.
“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 states.
Kyrgyzstan Passes Digital Som Framework
Kyrgyzstan has progressed its CBDC initiative by approving 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 #Kyrgyzstan https://t.co/mpjwrJYHQS
— Cryptonews.com (@cryptonews) December 11, 2024
The legislation, which has been approved in its initial reading, grants the digital som legal tender status and lays the groundwork for prototype testing in early 2025.
The National Bank of Kyrgyzstan will oversee the issuance, accounting, and distribution of the digital som through a centralized platform, ensuring security and efficiency while maintaining central control over the currency.
In contrast to other CBDC initiatives that significantly depend on blockchain, Kyrgyzstan’s strategy focuses on centralized management tailored to the nation’s specific financial infrastructure.
While the framework may incorporate features such as smart contracts, it does not explicitly rely on blockchain technology.
The post Societe Generale and Banque de France Complete First CBDC Repo Transaction appeared first on Cryptonews.
