Today In Digital-First Banking: Banque de France Completes CBDC Pilot; New PPP Extends $5 Billion In Loans In First Week

In today’s top news in digital-first banking, Banque de France has completed its central bank digital currency (CBDC) test, while roughly 60,000 loans were distributed during the first week of the reopened Paycheck Protection Program (PPP). Plus, Goldman Sachs’ CEO says he doesn’t believe the present special purpose acquisition company (SPAC) boom is sustainable.

Banque De France Has Finished CBDC Trial

Banque de France has successfully finished its CBDC pilot, with a blockchain infrastructure for interbank settlement. The effort involved a settlement on a private blockchain provided by British upstart SETL of approximately 2 million euros (roughly $2.4 million.) Banque de France had released a request for applications for a CBDC pilot last year.

Pandemic’s New PPP Extends $5 Billion During First Week 

Approximately 60,000 loans totaling $5 billion were extended in the first week of the just reopened PPP. The U.S. Small Business Administration (SBA) started the program again on Jan. 11, with the first couple of days dedicated for community and smaller lenders such as the Community Development Financial Institutions Fund (CDFI).

Goldman CEO Says SPAC Explosion ‘Unsustainable’

Goldman Sachs CEO David Solomon said he doesn’t believe the current SPAC boom can last. Firms or investment groups make SPACs to raise money via the sale of shares to the public or entities like private equity funds. Then, a SPAC harnesses the funds to buy a company. SPACs are set up as shell companies just to take companies public that don’t want to undergo the typical initial public offering (IPO) process.

Citi To Accelerate ISO 20022 Adoption Via Volante Partnership

Volante Technologies is working with Citi to speed up the financial firm’s adoption of the ISO 20022 financial messaging protocol. Citi will construct its central ISO 20022 functionality with Volante’s VolPay for ISO 20022 Migration offering that will enable the transmission of ISO 20022 messages in addition to the usage of ISO 20022 bolstered data.