Blockchain firm Tezos has been selected to spearhead the French central bank’s digital currency pilot program, one of a kind in Europe.
Societe Generale – Forge, a tech startup founded by French investment bank giant Societe Generale, has opted for Tezos to spearhead the central bank digital currency (CBDC) pilot program.
The French central bank Banque de France selected Societe Generale – Forge in July after a successful review of applicants in development of a CBDC to ease interbank settlements. France is carrying out an experiment to become the first European country to launch a digital Euro.
Tezos is a peer-to-peer public blockchain that has features such as on-chain governance, capacity to verify smart contracts as well as consensus algorithm that is primed on proof of stake. The blockchain platform comes with a vibrant ecosystem inclusive of research and development offshoot dubbed Nomadic Labs that is located in Paris and will play a vital role for the CBDC piloting. Nomadic Labs President, Michel Mauny explained about the deal:
“The Tezos project, strengthened by its technical capabilities, its adaptability, and its strong community, is already present in various projects, both in France and abroad. We are especially pleased to see this technology selected by Societe Generale – Forge, and to reaffirm, once again, that the quality and expertise of our engineering is rewarded.”
Francois Villeroy de Galhau, Banque de France’s governor, in December last year said that he was optimistic that France will be the inaugural European country to offer digital currency. The governor explained that the central bank is exploring how technology can be leveraged in enhancement of the financial markets more so when it comes to interbank regulations.
Although France seems to be on the forefront in development of a CBDC, other European countries such as Italy, Netherlands and Lithuania are also exploring the idea of CBDC. Additionally, the European Central Bank is also working on trials although details remain scanty.
Currently, Tezos is only one of the handful public blockchain platforms participating in development of a CBDC that could culminate to a digital euro.