Banque de France Revealed that the European Investment Bank Issued 100 Million Euro Digital Bond as a CBDC Test

Banque de France, the central bank of France, has revealed through its April 28 announcement, that the 100 million euro digital bond issued by the European Investment Bank on April 27, 2021 was actually a trial of the CBDC issued by the European central bank. 

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The announcement also said that the 2-year bond was issued on April 27, 2021, on the Ethereum public blockchain and was settled on April 28, 2021. The maturity date of the bond is April 28, 2023. The settlement was reportedly done through the use of a CBDC on a blockchain. Goldman Sachs, Santander and Société Générale led the sale. 

Banque de France said:

“From a technological standpoint, the experiment required the development and deployment of smart contracts under secured conditions, so that the Banque de France could issue and control the circulation of CBDC tokens and so that CBDC transfer occurred simultaneously with the delivery of securities tokens to the investors’ portfolio” .

The French central bank also said that it has future plans of experimenting with CBDC in the future too. The bank revealed that their effort was part of a concerted push for providing evidence of use cases for a European CBDC. The announcement said:

“In the coming months and in cooperation with the market, the Banque de France will conduct additional experimentations to assess other uses of central bank digital currency in interbank settlements.

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Danny Kim, head of revenue at crypto brokerCSFOX, had said on Wednesday that the bond issue by EIB on Ethereum helps Ethereum (ETH) price to increase to an all-time-high (ATH) at US$2,709. He said that the announcement worked as a trigger in favor of “a bullish institutional use case for Ethereum.”

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