The central banks of France and Switzerland have teamed up to launch the trial Switzerland has collaborated to launch the experiment. The two central banks have collaborated with several trading banks including UBS Group AG, Credit Suisse Group AG, Accenture Plc, and Natixis SA to test the central bank's crypto currency (CBDC).
The joint venture was launched under the innovation hub project. Benoit Coeure, chairman of the BIS Innovation Hub said that,
“The G20 group has taken a step forward in adapting crypto. The G20 has made cross-border payments a priority. This experiment will provide more precise data on the use of CBDCs in terms of efficiency, transparency and speed of CBDC usage."
A commercial experiment will test the functionality of cross-border cryptocurrency remittances and exchange of financial instruments against CBDC and the Euro. However, the State Bank of Switzerland and the Bank of France warned that the market should not see this as a guarantee that CBDCs will be issued cohesively in the nearest future. However, with this real experiment it brings indications that the Central Bank is getting serious about adopting cryptocurrencies.
In addition to the experiments carried out by China, the experiments carried out by the central banks of France and Switzerland are the main and large experiments. Prior to this, the market was also surprised by Russia's announcement that it would start testing the use of CBDCs in 2022. South Korea and Japan are also expected to start their experiments in the same year.
China is now at the forefront of CBDC development after starting to test it on a large scale since 2019. At the same time, the recent G-20 conference also discussed the CBDC draft and proposed joint regulations to oversee CBDCs.
Bitcoin is currently trading at a price level of $37,251.88 a unit.
