Banque de France, HSBC, and IBM have completed a successful test of the interoperability of wholesale central bank digital currency (CBDC). The experiment was designed to explore the potential benefits and challenges of using CBDC for interbank settlements and to test the technical feasibility of using CBDC for cross-border transactions.
The experiment involved the use of a simulated CBDC, called “MNH,” which was issued by Banque de France and exchanged between HSBC and IBM through a decentralized platform using blockchain technology. The experiment demonstrated that the use of CBDC for interbank settlements can improve the efficiency and speed of financial transactions, and can potentially reduce the cost of cross-border payments.
Banque de France, HSBC, and IBM are all committed to exploring the potential of CBDC and to supporting the development of a more efficient and secure financial system. The successful trial of the interoperability of wholesale CBDC is an important step towards realizing these goals, and further research and development will be necessary to fully understand the potential benefits and challenges of using CBDC for interbank settlements.