100M EURO DIGITAL BOND WAS A CBDC TEST, SAYS BANQUE DE FRANCE

Last updated: June 19, 2025, 20:33 | Written by: Mike Novogratz

The world of finance is constantly evolving, and one of the most significant developments in recent years is the rise of digital currencies. It turns out the 100 million euro digital bond issued by the European Investment Bank earlier this week was actually a trial of a European central bank-issued digital currency, or CBDC. An April 28 announcement from France s central bank, Banque de France, revealed the digital bond was settled using a CBDC on a blockchain. TheCentral Bank Digital Currencies (CBDCs) have emerged as a hot topic, with many countries exploring their potential benefits and drawbacks. The Banque de France s wholesale CBDC solution, based on our own DLT (DL3S), is one of the solutions that will be tried out in 2025. The Eurosystem recently published the list of participants in the first wave of exploratory work, and we are delighted to test our DLT solution with them.In a groundbreaking move, the Banque de France recently revealed that a 100 million euro digital bond issuance by the European Investment Bank (EIB) was, in fact, a trial run for a European CBDC. It turns out the 100 million euro digital bond issued by the European Investment Bank earlier this week was actually a trial of a European central bank-issued digital currency, or CBDC. An April 28 announcement from France s central bank, Banque de France, revealed the digital bond was settled using a CBDC on a blockchain.This revelation has sent ripples through the financial industry, sparking discussions about the future of money and the role of central banks in the digital age. 100M euro digital bond was a CBDC test, says Banque de France European financial institutions are using pilots to make a case for the digital euro.This test highlights the use of blockchain technology for bond issuance and settlement, streamlining operations and reducing costs. A Thursday announcement from France s central bank, Banque de France, revealed the digital bond was settled using a CBDC on a blockchain. The two year-bond was issued on the Ethereum public blockchain on Tuesday and settled the following day, with a maturity date of Ap.This article delves into the details of this pivotal event, exploring its implications, the technology behind it, and what it means for the future of finance and the digital euro.From understanding wholesale CBDCs to the broader context of European financial innovation, we'll unpack the key aspects of this landmark trial and its potential to reshape the financial landscape. Last week we reported that the European Investment Bank (EIB) had issued its fifth digital bond. Just a few days later it issued its sixth, a 100 million issuance that also used the Banque de France s exploratory cash tokens or wholesale CBDC (wCBDC) for settlement.What does this development mean for the average citizen, and how might it affect the way we interact with money in the years to come?Read on to find out more.

The 100M Euro Digital Bond: A CBDC Trial Unveiled

What initially appeared to be another digital bond issuance by the EIB has now been revealed as a crucial experiment in the realm of CBDCs. 100M euro digital bond was a CBDC test, says Banque de France 100M euro digital bond was a CBDC test, says Banque de France . Cryptocurrency. Published, .The Banque de France’s announcement confirmed that the 100 million euro digital bond was settled using a wholesale CBDC (wCBDC) on a blockchain platform. The bank also revealed plans for further experiments in the future, noting that its efforts are part a push to provide evidence of use cases for a European CBDC. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.This trial represents a significant step forward in understanding the practical applications of CBDCs and their potential to transform financial transactions.

Key Players and Their Roles

Several key players were involved in this groundbreaking trial:

European Investment Bank (EIB): The issuer of the 100 million euro digital bond.
Banque de France: The central bank of France, which provided the wCBDC and the DL3S DLT platform for settlement.
Caisse des Dépôts et Consignations (CDC): A state-owned French development bank that participated in the settlement.
Goldman Sachs Bank Europe, Santander, Société Générale: The banking syndication appointed by the EIB to issue and distribute the digital native bonds.

The involvement of these prominent institutions underscores the importance of this trial and the potential impact of CBDCs on the broader financial ecosystem.

Understanding Wholesale CBDCs (wCBDCs)

Unlike retail CBDCs, which are designed for everyday consumer use, wholesale CBDCs are intended for use by financial institutions in interbank settlements and other large-scale transactions.The Banque de France’s pilot program focused on the wholesale use of CBDCs, exploring their potential to improve efficiency, reduce costs, and enhance transparency in the financial system.

Benefits of Wholesale CBDCs

Wholesale CBDCs offer several potential advantages:

Faster Settlement: wCBDCs can facilitate near-instantaneous settlement of transactions, eliminating the delays associated with traditional payment systems.
Reduced Costs: By streamlining settlement processes, wCBDCs can lower transaction costs for financial institutions.
Increased Transparency: The use of blockchain technology can enhance transparency in financial transactions, making it easier to track and audit payments.
Improved Security: CBDCs can offer enhanced security features, reducing the risk of fraud and cyberattacks.
Enhanced Efficiency: By automating processes, wCBDCs can significantly enhance efficiency in the financial system.

These benefits make wCBDCs an attractive option for central banks looking to modernize their payment infrastructure and improve the overall efficiency of the financial system.

The Technology Behind the Trial: DL3S DLT Platform

The Banque de France utilized its DL3S (Distributed Ledger System) DLT platform to facilitate the settlement of the 100 million euro digital bond.DLT, also known as blockchain, is a technology that allows for the secure and transparent recording of transactions across a network of computers.

Key Features of the DL3S Platform

The DL3S platform offers several key features:

Permissioned Network: The DL3S platform is a permissioned network, meaning that only authorized participants can access and validate transactions.
Smart Contracts: The platform supports the use of smart contracts, which are self-executing agreements that can automate various aspects of the settlement process.
Interoperability: The DL3S platform is designed to be interoperable with other blockchain networks, allowing for seamless integration with existing financial systems.
Scalability: The platform is designed to handle a high volume of transactions, ensuring scalability and performance.

By leveraging the power of DLT, the Banque de France aims to create a more efficient, transparent, and secure financial system.

The Venus Initiative: A Deeper Dive

The 100 million euro digital bond issuance was part of the Venus initiative.This initiative involved the issuance of a digital native bond by the EIB under Luxembourg law, with settlement using a tokenized representation of euro central bank money.The EIB appointed Goldman Sachs Bank Europe, Santander, and Société Générale as banking syndication to issue and distribute the digital native bonds.

Tokenization and its Benefits

Tokenization involves representing real-world assets, such as bonds, as digital tokens on a blockchain.This process offers several advantages:

Increased Liquidity: Tokenized assets can be traded more easily and efficiently than traditional assets, leading to increased liquidity.
Fractional Ownership: Tokenization allows for fractional ownership of assets, making them more accessible to a wider range of investors.
Automated Compliance: Smart contracts can be used to automate compliance with regulatory requirements, reducing the burden on issuers and investors.
Improved Transparency: Blockchain technology provides a transparent and auditable record of ownership and transactions.

By tokenizing bonds, the Venus initiative aims to unlock new opportunities for investors and issuers alike.

France and Luxembourg's Collaborative Approach

The collaboration between France and Luxembourg in this trial highlights the growing recognition of the importance of cross-border cooperation in the development and implementation of CBDCs. 100M euro digital bond was a CBDC test, says Banque de FranceBoth countries have been actively exploring the potential of digital assets and blockchain technology, and this joint effort represents a significant step forward in their efforts.

Lessons Learned from the Collaboration

The collaboration between France and Luxembourg has provided valuable insights into the challenges and opportunities associated with implementing CBDCs in a cross-border context. BTCUSD Bitcoin 100M euro digital bond was a CBDC test, says Banque de France European financial institutions are using pilots to make a case for the digital euro. Continue reading 100M euro digital bond was a CBDC test, says Banque de France The post 100M euroSome of the key lessons learned include:

Importance of Regulatory Harmonization: Harmonizing regulatory frameworks across different jurisdictions is essential for the successful adoption of CBDCs.
Need for Interoperability: CBDC systems must be interoperable with existing payment systems and other blockchain networks to ensure seamless integration.
Importance of Data Privacy: Protecting data privacy is crucial for building trust and ensuring the widespread adoption of CBDCs.
Value of Collaboration: Collaboration between central banks, financial institutions, and technology providers is essential for driving innovation in the digital asset space.

These lessons will be invaluable as other countries explore the potential of CBDCs and seek to collaborate with their neighbors.

European Financial Institutions Leading the Charge

European financial institutions are at the forefront of innovation in the digital asset space, actively exploring the potential of CBDCs and other blockchain-based technologies. 100M euro digital bond was a CBDC test, says Banque de France Get link 30, 2025 European financial institutions are using pilots to make a case for the digital euro.The Banque de France’s trial is just one example of the many initiatives underway across Europe to modernize the financial system and prepare for the future of money.

Other Notable Initiatives in Europe

In addition to the Banque de France’s trial, several other notable initiatives are underway in Europe:

Digital Euro Project: The European Central Bank (ECB) is exploring the possibility of launching a digital euro, a CBDC for the Eurozone.
Pilot Projects: Various European countries are conducting pilot projects to test different aspects of CBDCs, such as payment systems and cross-border transfers.
Regulatory Frameworks: European regulators are developing comprehensive regulatory frameworks for digital assets, aiming to provide clarity and certainty for businesses and investors.

These initiatives demonstrate the commitment of European financial institutions to staying ahead of the curve and embracing the potential of digital assets.

The Future of CBDCs: What's Next?

The Banque de France's successful trial with the 100 million euro digital bond has paved the way for further experimentation and development in the field of CBDCs. 100M euro digital bond was a CBDC test, says Banque de FranceSource: CointelegraphPublished onThe bank has announced plans for future experiments, indicating its commitment to providing evidence of use cases for a European CBDC.

Expected Developments in the Near Future

Several developments are expected in the near future:

Further Pilot Projects: Central banks will continue to conduct pilot projects to test different aspects of CBDCs, such as scalability, security, and interoperability.
Regulatory Developments: Regulators will continue to develop comprehensive regulatory frameworks for digital assets, providing clarity and certainty for businesses and investors.
Technological Advancements: Technological advancements will continue to drive innovation in the CBDC space, leading to more efficient, secure, and user-friendly systems.
Increased Adoption: As CBDCs become more mature and widely accepted, adoption rates are expected to increase, leading to a more digital and efficient financial system.

The road ahead is full of challenges and opportunities, but the potential benefits of CBDCs are too significant to ignore.

Addressing Common Questions about CBDCs

The rise of CBDCs has generated a lot of questions and concerns. A CBDC is a digital national currency. In the case of the United States, a CBDC would be a digital form of the U.S. dollar whereas, in Nigeria, their CBDC is a digital form of the Naira. Like paper dollars, a CBDC would be a liability of the central bank. But unlike paper dollars, a CBDC would offer neither the privacy protections nor the finality that cash provides.Here are some answers to common questions about CBDCs:

What are the main benefits of CBDCs?

CBDCs offer several potential benefits, including faster and cheaper payments, increased financial inclusion, and improved monetary policy implementation.

What are the potential risks of CBDCs?

Potential risks include data privacy concerns, cybersecurity threats, and the potential for disintermediation of commercial banks.

How will CBDCs affect the average citizen?

CBDCs could make it easier and cheaper to send and receive money, potentially improving financial inclusion and reducing reliance on cash. 3.8K subscribers in the AllThingsCrypto community. A sub to discuss cryptocurrnecy.However, it's important to address privacy concerns and ensure that CBDCs are accessible to everyone.

Are CBDCs the same as cryptocurrencies?

No, CBDCs are different from cryptocurrencies.CBDCs are issued and backed by central banks, while cryptocurrencies are decentralized and not backed by any central authority.

What is the current status of CBDC development globally?

Many countries around the world are exploring the potential of CBDCs, with some already launching pilot projects and others considering full-scale implementation.China, for example, is one of the leading countries in CBDC development, while other nations such as Sweden and the Bahamas have also made significant progress.

The Ethereum Blockchain and the Digital Bond

The two-year digital bond issued in this CBDC test was launched on the Ethereum public blockchain on Tuesday. Yesterday, state-owned French development bank Caisse des D p ts et Consignations (CDC) issued a 100m ($108m) digital bond settled using the Banque de France s DL3S DLT platform using its pilot wholesale central bank digital currency (wCBDC).This choice of platform is noteworthy. Bitcoin vs. Marx: Two Competing Geopolitical Domino Theories Marxism and Bitcoin have one thing in common, the idea that a radical change in the structure of society will happen iWhile permissioned blockchains are often considered for institutional uses due to their controlled access, leveraging the Ethereum public blockchain signals a desire to explore broader accessibility and interoperability, even for wholesale financial instruments.

Why Ethereum?

Using the Ethereum blockchain for this digital bond experiment suggests several advantages:

Established Infrastructure: Ethereum is a mature and well-tested blockchain platform with a robust ecosystem of developers and tools.
Smart Contract Capabilities: Ethereum's smart contract functionality allowed for the automation of bond issuance and settlement processes.
Transparency and Auditability: Public blockchains like Ethereum provide a high degree of transparency and auditability, which can enhance trust in the financial system.
Potential for Interoperability: Using a widely adopted public blockchain could facilitate interoperability with other digital asset systems and applications.

However, using a public blockchain also comes with challenges, such as scalability and privacy concerns, which need to be carefully addressed.

The Impact on Financial Inclusion

While this particular trial focused on wholesale CBDC applications, the broader implications for financial inclusion should not be overlooked.By modernizing the financial infrastructure, CBDCs can potentially lower transaction costs and increase access to financial services for underserved populations.

How CBDCs Can Promote Financial Inclusion

Here are some ways CBDCs can contribute to financial inclusion:

Lower Transaction Costs: CBDCs can reduce or eliminate transaction fees, making financial services more affordable for low-income individuals.
Increased Access to Payments: CBDCs can enable individuals without bank accounts to participate in the digital economy, facilitating payments and remittances.
Simplified Cross-Border Transfers: CBDCs can streamline cross-border payments, reducing costs and delays associated with traditional remittance services.
Improved Government Benefits Distribution: CBDCs can facilitate the direct and efficient distribution of government benefits to eligible recipients.

However, it's crucial to ensure that CBDC systems are designed with accessibility in mind, addressing issues such as digital literacy and access to technology.

Potential Challenges and Concerns

Despite the potential benefits, the implementation of CBDCs also presents several challenges and concerns that need to be carefully addressed.

Key Challenges and Concerns

Data Privacy: Protecting the privacy of user data is a major concern, as CBDCs could potentially allow central banks to track individuals' spending habits.
Cybersecurity: CBDC systems are vulnerable to cyberattacks, which could compromise the integrity of the financial system.
Financial Stability: The introduction of CBDCs could potentially destabilize the financial system by disintermediating commercial banks and increasing the risk of bank runs.
Monetary Policy Implementation: CBDCs could complicate monetary policy implementation by altering the demand for central bank reserves and affecting the transmission mechanism of interest rates.
Legal and Regulatory Uncertainty: The legal and regulatory framework for CBDCs is still evolving, creating uncertainty for businesses and investors.

Addressing these challenges and concerns will be crucial for ensuring the successful and responsible implementation of CBDCs.

Conclusion: Key Takeaways and Future Implications

The Banque de France's revelation that the 100 million euro digital bond was a CBDC test marks a pivotal moment in the evolution of digital currencies.This trial underscores the potential of wholesale CBDCs to transform financial transactions, offering faster settlement, reduced costs, and increased transparency. El precio de ETH sube tras la noticia del bono digital de $121 millones del Banco Europeo de Inversiones; Un anuncio del jueves del banco central de Francia, Banque de France, revel que el bono digital se liquid utilizando una CBDC en una red blockchain. El bono a dos a os se emiti en la blockchain p blica de Ethereum el martes y seThe use of the DL3S DLT platform and the Ethereum blockchain highlights the role of technology in driving innovation in the financial system.However, this experiment also underscores the importance of regulatory harmonization, interoperability, and data privacy in the development of CBDCs. It turns out the 100-million euro digital bond issued by the European Investment Bank earlier this week was actually a trial of a European central bank digital currency. An announcement from France s central bank, Banque de France, revealed the digital bond was settled using a CBDC on a blockchain.With European financial institutions leading the charge, the future of CBDCs looks promising, but it's essential to address the challenges and concerns associated with their implementation.The trial highlights the growing trend of European financial institutions using pilots to make a case for the digital euro, and it serves as a call to action for policymakers, financial institutions, and technology providers to collaborate and shape the future of finance. The Banque de France s first successful test with digital euro was carried out in collaboration with investment bank Societe Generale. Though the bank did not reveal much, the test indicates that the pilot program is focusing more on the wholesale use of CBDC.As CBDCs continue to evolve, it's important for individuals to stay informed and engaged in the discussion, ensuring that these digital currencies serve the best interests of society. European financial institutions are using pilots to make a case for the digital euro. It turns out the 100 million euro digital bond issued by the European Investment Bank earlier this week was actually a trial of a European central bank-issued digital currency, or CBDC.An April 28 announcement from France s central bank, Banque de France, MoreUltimately, the success of CBDCs will depend on addressing the challenges, embracing innovation, and fostering collaboration across all stakeholders.Will CBDCs replace traditional forms of money? {{ menus.user.data_crypt.email }} {{item.text}} compartirOnly time will tell, but one thing is certain: the future of finance is digital, and CBDCs are poised to play a major role.