Tezos Technology Used In Digital Euro Model Experiments

by | Jul 29, 2021 | Adoption, Latest

It has been confirmed in a ‘Digital Euro experiment Combined feasibility’ report that Tezos technology has been used as one of the model experiments. A private fork of the Tezos blockchain was used for experimentation.

The Digital Euro Experiment

It has been confirmed that Tezos technology is being used in Digital Euro experimentation as stated in the ‘Digital Euro Experiment Combined Feasibility – Tiered Model’ published by the Banque De France here.

In the report it stated:

“Two distributed ledgers (a private fork of the Tezos blockchain and a customized fork of the NEM blockchain) enabled the implementation of a value-based Tier 2 system.”

This tiered-model experiment was brought together by many different central banks in Europe including Banque de France, Banca d’Italia, Banco de España, Banque centrale du Luxembourg, Banque Nationale de Belgique, the European Central Bank, Lietuvos Bankas, and Oesterreichische Nationalbank.

It was concluded in the report that:

Overall, the experiment assessed that a tiered model such as the one described in this report could be a suitable architecture for the digital euro. From a technical point of view, it demonstrated the feasibility of combining centralized and distributed systems, which allows accommodating several use cases and supporting various functionalities of a potential future digital euro.

This is not the first time that Tezos has been included in central bank experiments regarding a potential CBDC (Central Bank Digital Currency). In September 2020, it was announced that Société Générale Forge had selected the Tezos blockchain to run Central Bank Digital Currency (CBDC) experiments.

This was after Société Générale had been selected by the Banque De France as part of its call for applications to experiment the use of Central Bank Digital Currency for interbank settlements in July 2020.

Later it was announced that the French banking giant Société Générale, who are the 3rd largest bank in France and 7th in Europe have issued the first structured product on the Tezos Blockchain. 

In this latest advancement, the use of a private fork of the Tezos blockchain was used as part of the ‘Value-Based’ tier 2 system.

Here you can see highlighted on the image of where the Tezos technology was used:

The tier 2 ‘Value-Based’ system where Tezos technology was used:

is made of multiple coexisting and interoperable systems where all supervised intermediaries open and manage accounts (account-based D€) or wallets (value-based D€) for end-users

Notice the D€ sign here symbolizing the Digital Euro.

What is of particular interest here is that end-users are mentioned in relation to the tier 2 system, which was experimented on using Tezos technology. This tier 2 system contains Digital Euro value-based wallets for end users.

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