Yesterday the Banque de France held an event on the move to T+1 settlement in Europe. Much of the discussion covered tokenization, DLT and the need for a wholesale CBDC. The European Investment Bank (EIB) is the most prolific issuer of digital bonds. Its activities aim to move the innovation needle, so it doesn’t hesitate to outline the issues to be addressed to gain traction.
The EIB has issued six digital bonds so far using five different DLT platforms. Last November, during the ECB wholesale DLT settlement trials, the EIB also attempted to become a digital bond investor. EIB Director General of Finance, Cyril Rousseau, said they found it a painful task, and instructive about what needs to happen for tokenization to achieve scale. The process took so long that they only invested in the Slovenian sovereign digital bond four days before it was redeemed. It had a four month term.
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