 Good afternoon now from my side. So my name is Victor Anglecheider, I am the representative of Bank de France in the Eurosystem Task Force that is exploring this potential use of new technology for wholesale central bank money settlement. I will introduce on my side, introduce you to the full-data interpretive solution that is the third solution available for experiments and trials in this exploratory work. Moving to the next slide, I will guide you into this full-data interpretive solution in two parts. First, we will try to better understand what is the solution at stake with the experiments have been led to the solution and how it would work if it is implemented. In summary, we will see what are the objectives and the main features of the solution. Then in the second part, I will focus on the setup of the solution for the exporter work itself. Next slide. So indeed the full-data solution that is proposed for this exporter work results from a large scope of experiments that we have conducted at Bank de France level through what we call learning by doing an approach. The dozen experiments that you see here have been part of the largest program ever conducted at central bank level with the aim to investigate how to set the transaction on tokenized or native digital assets with wholesale central bank money available in the form of CBDC tokens. For that, the use cases that we have explored have included either DVP, the boxes in blue here with cash token against asset tokens or PPP, the boxes in yellow here for an exchange of cash tokens in two different currencies. The objective of these experiments have been to allow the market to reap the benefits of the blockchain on their side when setting transactions on DLT with the usage of a CBDC token as a safe settlement asset. In order to do so, we have worked with a large range of stakeholders such as commercial banks, central banks, issuers. For DVP with the large variety of assets, you can see in the use cases type one here, such as bonds, shares, usage of sovereign bonds. And for PVP, as you can see it in the use cases type two, we have covered remittances as well as cross-border and cross-currency payments or even covered some advanced process imagined from the DeFi, such as the automated market maker project that we have conducted with other central banks. As regards the blockchain technology, we have conducted these experiments on public as well as on private blockchain in a way to be as much exhaustive as feasible for the technology assessment. All in all, this large program has allowed us to identify three full DLT solutions that you can see on the left side here, namely the interoperability distribution and integration, each defined in the way we make the CBDC available together with the asset token on the same DLT for integration and distribution or across two DLTs for the interoperability model. At this point in time, as was mentioned by the colleagues, this last interoperability model has been chosen as the easiest and safest one we can start with in this exploratory work and that I will detail now. But for further details on these three full DLT solutions as well on this program of experiments, you can follow the link at the bottom left here to the Bank of France report. Next please. Now, out of these experiments, let's have a forward-looking view if implemented on the full DLT interoperability solution that is proposed for this exploratory work. As a reminder, the aim of this solution is to provide safe wholesale central bank money as cash on the ledger in order to settle a counterpart leg also on the ledger. On that basis, subject to detailed feasibility assessment that may occur out of this exploratory work. First, the EUR system DLT that you see as an hexagon here, including a wallet, would be an additional service offered by the EUR system. Second, the wholesale central bank money available on such EUR system DLT would be the direct liability of the EUR system equivalent to the conventional cash balances available in the other pots of liquidity. As such, the EUR system would ensure, as shown in point three, seamless liquidity management between the existing liquidity pots and the new EUR system DLT liquidity pots. The role allowing, as concluded in point number four, the settlement of participants would sell CBM on the EUR system DLT to be final and irrevocable. Next please. More specifically now, let's see how the settlement would work in an implementation view of the solution. As I said earlier, the objective of the solution is to make central bank money available for the settlement of transactions on blockchain with the settlement performed across two distinct DLTs. The one being the cash DLT platform set up by the EUR system on which central bank money would be issued and used for settlement and the others being DLTs set up by the private sector such as market DLT for DVP or by other jurisdiction outside the EUR area for PVP. Therefore making the cash leg and the counterpart leg both available in the form of tokens for cross ledger settlement. In a way to meet this objective, the main characteristics of this solution are for the market participants to hold the world's central bank money in the form of cash tokens on the DLT of the EUR system. Therefore fully leaving the central bank money under the control of the central bank on this DLT. Whereas the asset token can be owed on a market DLT where the participant expects to reap the benefits of the DLT be it in a private permission or public blockchain. With the DVP being performed across the two DLT using NHTSC protocol that orchestrates the transfer of cash on the cash DLT in the box on the left side and the transfer securities on the market DLT in the box on the right side in the wall in an atomic way. These characteristics combining the full control of the central bank money on the side of the central bank and the ability to use any type of blockchain on the market side has led us as I mentioned before to select this full DLT model to start the exporter work. Whereas policy issues still remain under investigation regarding the other models that I've mentioned before having the cash and the asset tokens available on the same ledger. Next please. Now as a second part of the agenda let's see how this model is used for the need of the exporter work itself in terms of setup in terms of actors able to use it or in terms of technology available and more specifically let's see how the settlement is performed atomically across the two ledgers by the participants that are allowed to use this solution. Regarding the setup of this solution for the exporter work the solution keeps of course the same objective and the same characteristics we have just described for the so-called steady state version. Erwin has searched to explore the features of this solution under the experiments of the trials. However for the for the purpose of this exporter work only exporter cash tokens also named ECTs will be used as a proxy for the wall say central bank money on DLT meaning that these ECTs will not yet be the result of a liquidity transfer from the euro system global pot of liquidity but only as an experimental liquidity reliant on on those are prevalent escrow camps that have been described also before which does not by the way does not prevent from exploring the usage of cash tokens and the benefits of handling both layers of the settlement under the same technology. Similarly the DLT that will be used for this exporter work shall be the DLT platform that has been developed by Bank de France out of the experiments that have presented before as a proxy of the euro system DLT platform. Next in terms of actors now this solution will involve three categories of players on the cash DLT. First the box on the on the right the central banks in their role to meet either to issue or to burn I mean to redeem the so-called exploratory cash token. This meet and burn been once again necessary since the liquidity is not directly transferred by the participants from their global liquidity pot to the DLT pot. Then on the left side the second type of actor will be the payment banks on DLT meaning the banks holding the cash on the cash DLT with the strong conditions for these banks to be outages participants since the access to the world's central bank money is restricted to such outages participants. These payment banks will hold their cash DLT on dedicated cash wallets for their own usage or for the usage of their clients and most importantly these payment banks will be in charge to perform the DDP through the HTLC process on the cash side. Last in the box on the bottom on the right side a third type of player the clients of payment banks will be able to act as an optional actor as such they cannot hold the cash wallet since they are not outages participants but they will be allowed to use the outages account of their payment banks wallet through what is called a sub wallet with in this case a read on the access to such purchasing power granted by their payment bank. Next please from a technological viewpoint the underlying features of this solution includes an implementation on the on the hyperledger fabric road chain under a permissioned network including notes representing organizations that are authorized to join this network and granted with access to data and usage of functions such as the mint and the burn of cash tokens and allocating the cash tokens in dedicated cash wallets to settle the transactions meaning that the notes can be allocated either to central banks or to payment banks for their clients. In terms of infrastructure these notes are hosted on the France cloud the whole to allow to perform the settlement of DDP or of a PVP as we describe it in the in the next slide. Indeed the key feature now of this interoperability model is to allow the atomic settlement of the DVP or the PVP by using this HTLC protocol that allows a conditional payment cross network relying on exchange of secrets the the hash of HTLC under a given time bounds the the time lock of this acronym with the seller and the buyer having their corresponding cash and securities custodians involved on the respective platform. On that basis securities and cash are settled atomically meaning on an all or non basis with an actual exchange of securities and cash if resources are available on each DLT platform or with no settlement at all in case of resources failure or calling for a contingency procedure should this DVP fail for any other cause than the resource failure for example power failure with the DVP being initiated by the market DLT was the trade information that are legally binding from from their side so that's it for the the principle of the settlement protocol that we wanted to keep as high level and easy to understand as possible at this point in time in this in this session but should you need it and you may need it for further details on this process are available in the service description that is included in the the call of expression of interest next slide now in practice and and to conclude this presentation let's see how to participate in in the exporter work with this full DLT interoperability solution as a first step any commercial bank that is interested to participate in to this work we'll have to contact its central bank i.e. the central bank of of its jurisdiction as was as was detailed before this central bank will of course get in contact with the with the cb task force and with the ncb provider of the solution this commercial bank wants to test meaning here with bank de france for this interoperability solution then in a step two the onboarding on the R2GS side will be performed by the central bank of the candidates jurisdiction then as is mentioned in the step three here either this central bank will hold a note on the bank de france DLT network in order to manage the exporter cash token i.e. by performing their mint and burn and by allocating these tokens to their participant's wallets or as is represented in in the step three this year as an alternative this central bank does not act into the bank de france network and prefers to outsource this task to bank de france as the solution provider i.e. in that case bank de france will perform the mint and burn of these ects based on funding performed by the by the commercial bank with its central bank so that's it for this first i level description of our solution on next slide i invite you to move to the demo now and see how this works in practice with a look on the tools made available in the in DR3S and i will be happy after that to answer any questions you may have on this on this solution the full DLT interoperability solution is one of the three solutions available in order to perform the euro system exploratory work this full DLT solution is the only one that offers the usage of cash tokens for the settlement of the cash leg of your DVP or one of the two legs of your PVP this cash leg using cash tokens is handled on the DL3S DLT platform that has been developed by the bank de france based on hyper ledger fabric for experiments it has conducted in the last few years this demo provides you insights into the main features you will have access to when using DL3S to make your payments with cash tokens the euro system exploratory work aims at assessing interoperability type solutions to provide central bank money on the cash leg for transactions on market DLT with trials using real operations or experiments using fixtures operations these trials and experiments involve transactions settling a tokenized asset available on a market DLT against the central bank money that is available in the form of an exploratory cash token on DL3S the full DLT interoperability solution provides three major features first it meets the need for safe transactions with settlement in central bank money second it meets the need for innovation with cash on the ledger available in the form of exploratory cash tokens for the trials and experiments third it meets the expectation for an atomic settlement with DVPs performed across the cash and market DLT relying on settlement automated mechanisms such as the HTLC protocol the full DLT interoperability solution allows the settlement across DL3S for the euro tokens and the market DLT for the asset tokens relying on a settlement automated mechanism such as the HTLC protocol it provides the main following functionalities number one the management of dedicated cash wallets number two the minting of exploratory cash tokens at the start of day to bring the liquidity from CLM or T2 to DL3S number three the execution of a DVP with the payment of the cash leg under an atomic settlement initiated by the market DLT platform here relying on a settlement automated mechanism HTLC it allows the payment by payment banks on DLT or by their clients through the dedicated cash wallets of RTGS participants the only ones that are allowed to hold a dedicated cash wallet number four the burn of exploratory cash tokens at the end of day to bring back the liquidity to T2 or to CLM first let's start with the dedicated cash wallets management the exploratory cash tokens used for cash payment are held in dedicated cash wallets the management of these dedicated cash wallets allows the opening enclosure of dedicated cash wallets the initiation of exploratory cash tokens transfer and redemption operations and the visibility on balances and transactions history as a payment bank under the jurisdiction of a national central bank willing to use exploratory cash tokens to buy tokenized securities I have to ask my national central bank to open a dedicated cash wallet for me on DL3S once my dedicated cash wallet is opened I can have access to my wallet's information through the user interface and my national central bank can supervise what I have on my wallet as well as the operations I initiate as a result the dedicated cash wallet of payment bank s is opened by its national central bank ncb1 and the dedicated cash wallet of payment bank d is opened by its national central bank ncb2 next the mint of exploratory cash tokens allows to create liquidity at the start of day in the form of exploratory cash tokens these ects are created by the national central bank on DL3S against a transfer of liquidity based on s grow accounts in the RTGS for the exploratory phase or directly from CLM for the steady state phase concretely on the screen as a national central bank I can initiate exploratory cash tokens issuance operations on payment banks dedicated cash wallets once the operation is settled the payment bank can see the balance of its dedicated cash wallet updated with the posting of cash tokens credited on its wallet as a result based on a transfer on t2 10 000 euros are transferred from transit wallet to bank s wallet on DL3S now for management of the delivery versus payment cross-chain DVPs between DL3S and a market DLT involve a seller and a buyer here bank b is selling securities to bank s versus a payment of exploratory cash tokens from bank s to bank b once both payment banks agree on the trade the DVP transaction is initiated on the market DLT side and then settled on both sides in an atomic way securities are delivered on market DLT and cash is transferred on DL3S in practice once the DVP is triggered on the market DLT and settled both payment banks involved in the transaction can check the cash postings related to the DVP with a credit on the balance of the seller bank b and a debit on the balance of the buyer bank s as a result a quantity of 70 securities is delivered from bank b securities wallet to bank s securities wallet on the market DLT side and an amount of 7 000 euros exploratory cash tokens is transferred from bank s dedicated cash wallet to bank b dedicated cash wallet on DL3S last the burn of exploratory cash tokens allows to bring back the liquidity into the central liquidity pool by the end of day the business day closure is triggered allowing to redeem exploratory cash tokens on DL3S against transfer of liquidity on escrow accounts in the RTGS during the exploratory phase or directly to CLM at the steady state phase concretely by the end of day as DL3S operator I can trigger the business day closure that generates redeem operations in order to empty all dedicated cash wallets this process will be automated at the steady state version I can observe that all balances are set to zero payment banks can also check the update of their balances set to zero by the end of day as a result of the business day closure 3000 euros are redeemed from bank s dedicated cash wallet to the transit wallet and 7 000 euros are redeemed from bank b dedicated cash wallet to the transit wallet as well same transfers are performed on T2 side from NCB1 account to bank s account and from NCB2 account to bank b account but any further information please refer to your contact for the exploratory work at your national central bank or at the ECB or at the bank de France thank you Victoria will you go through the through some some questions and provide some answers if there's some you're a mute hold on you're a mute picture and hold on yes no no it's fine sorry for that yes I'm saying I try to catch the questions as they as they come on the on the screen so do you think that the cash tokens on dia 3 subject to the markets and crypto assets so I managed to catch this one so actually these these cash tokens that we use here as as as was explained are exportery cash tokens so as such they are not a subject neither to these crypto assets regulation nor as a as a legal as legal money so so far so they are just used as exportery ones and using the the funding process that was described to be the with the escrow accounts so I managed to catch this one and try to catch another one so can you clarify how the HTLC leg is triggered so we tried here to to be as as high level as possible and as I mentioned you will have the details of that in in our service description attached to the to the caller for expression of interest but the principle is the exchange of messages so actually three messages through the HTLC process between the two dlt's and in these exchanges the the this protocol allows to to secure the the the security side when then exchanging the the ash and then to secure the the the cash side and then to deliver the cash and to ensure the delivery of the security under the given time either or or to to cancel all that so this is the process that is ensuring this atomic settlement as as I described it in a high level way in this in this presentation so again the the full details of this exchange of messages of these three messages are available in our documentation whenever we have to enter into these details with the with us candidates what does the 3s stand for so this is an easy one so it's a distributed ledger securities settlement system as I mentioned out of the experiments we we've performed we've identified these three models and so it's it's a wider model than the one we used for for this interoperability solution so that's the rationale behind this this acronym can commercial banks run a node on on the atria so I mentioned that quite quickly indeed yes for the management of this sub wallet of their of their clients so indeed that this is a possible so do I have other questions so can gsdc older bank have many dedicated cash wallets indeed yes so this is this is a fully possible if they wanted to do so it seems that we have a lot of questions I try to manage them as quickly as possible but but now we have the does a scroll mean money must be prevented so indeed so the the scroll counts allows to to put the money at the the start of day as was demonstrated and so this money backs the the the ECTs that are used in the in the cash DLT and at the end of the end of the day you bring back these ECTs and and the money on the RTS or are brought back at the right level to the by the central bank to the to the right participants