First experimentation with Eurosystem wholesale Central Bank Digital Currency (wCBDC)

The experiment focused on deposit accounts held on-chain by several banks with payments using a tokenized correspondent banking model and settlements conducted using wholesale CBDC (wCBDC). It aimed at demonstrating the feasibility of a platform-less blockchain protocol, proving that transactions can be securely settled without the need for a centralized platform operator. This experiment also confirmed the feasibility and merit of a unified ledger of commercial bank money for the banking industry, aimed at enhancing efficiency and reducing settlement risks.

The use of blockchain technology enables a cooperative interbank protocol, where each bank remains fully autonomous from any single provider. It also maintains competition and fosters innovation, while upgrading payment infrastructure and offering instant cash management services to their clients and themselves. This approach appears to respond well to desires for more instantaneity of the financial flows (payment and delivery) and more real time liquidity management of corporates and banks.

Key learnings of the Experiment
The results of the experiment demonstrate the interoperability model of wCBDC, using the Banque de France solution, DL3S, with so|cash, the decentralized correspondent banking protocol.

The construction of the tests and the technology has enabled the participants to deepen their understanding of the mechanisms and requirements of a decentralized, tokenized, instant, atomic correspondent banking model and the impacts on clients, banks, and central banks’ existing infrastructure and organization.

Interbank Cooperation and Acknowledgements
This experiment was made possible through a collaboration between various key actors in the financial ecosystem. 

Crédit Agricole CIB and CACEIS, as direct participants, played a crucial role in testing and validating the model, using an implementation constructed internally and now open-sourced.
 
The Banque de France supported us throughout the experiment (from technical tests to KPIs reporting) and provided us with central bank money in the form of a token on its technical environment DL3S.

The experiment also benefited greatly from the guidance of White & Case (Paris office), which provided legal expertise, and the coordination of KPMG France, which ensured efficient project management and expertise.

Additionally, this initiative relied on the support of several interbank partners acting as observers, including BNP Paribas, SEB, and Société Générale, sharing insights and demonstrating an interest for a shared standard within the industry.
 
This collaborative effort illustrates the potential for market-wide adoption of a unified approach to digital money.