Banque du France Reports on CBDC Trials

Share Article
In Brief
  • Banque du France First Deputy Governor Denis Beau spoke at Paris Blockchain Week Summit.

  • He touched upon trials of the digital euro.

  • The first experiments with the public are ongoing.

  • promo

    Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Banque du France gave an update on its Central Bank Digital Currency (CBDC) experiments at Paris Blockchain Week Summit.



 First Deputy Governor of the Banque du France, Mr. Denis Beau, spoke in particular about the variety of factors to take into consideration while engaging in trials of the digital euro.

Removing inefficiencies

The French central bank trials focus on the critical areas of transaction clearing and settlement. Beau stated that in particular, cross-border transactions can be made more efficient with the help of tokenization. Both time delays and anti-money laundering (AML) uncertainties may decrease. At the same time, Beau stressed that the new system must not also introduce new risks or ‘negative collateral effects’.



Banking the banked but better

Beau also spoke about improving services through ensuring better access to banking for ‘more fragile populations, households, and small businesses’. By doing so, economic development is furthered. However, he also noted risks outside of the technology itself. He specified risks coming in the form of alienating those who are uncomfortable with increasing digitization and those with security concerns.

As the French central bank’s mandate extends to supporting financial inclusion, balancing development and concerns is a central focus during the trials under way.

Global stablecoins

Beau also touched upon the need for Banque du France to have an active role in developing regulation. Some of his comments echoed those his Bundesbank counterparts uttered at the Future of Payments conference in Frankfurt in November. They called for the development of the digital euro to counter foreign CBDC intrusion. Likewise, Beau stated that adapting ‘global stablecoins’ needs to fit what he calls ‘two fundamentals of financial sector regulation’. These are financial stability and monetary sovereignty.

How far along are they?

At Frankfurt, German finance minister Olaf Scholz spoke about the need to launch the digital euro as soon as possible. European Central Bank executive board member Fabio Panetta laid out a framework for ‘the reinvention of money‘.

However, at Paris, Denis Beau actually showed how close the Eurosystem is to introducing it.

The experiments underway directly relate to the need for the Eurosystem, should circumstances so require, to be ready to issue a CBDC in order to ensure that central bank money is accessible to the general public and to preserve their freedom of choice of means of payment and their confidence in our currency.

Denis Beau

Beau also pointed out that the French central bank participates in tests that bring the digital euro to the general public. These are only tests, and not even an initial roll-out, as China is doing. But they do show how close in China’s tracks the Eurosystem is following.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

James Hydzik is a finance and technology writer and editor based in Kyiv, Ukraine. He is especially interested in the development of regulation in the face of increasingly rapid technological change. He previously covered the CEE region for Financial Times banking and FDI magazines. An ardent believer in gut renovating eastern Europe one flat at a time, he currently holds more home renovation gear than crypto.

Follow Author

Trade with the Best Crypto Signals - guaranteed profits with over 70% accuracy

Join now

Want to learn how to trade? Get a beginners guide from BeInCrypto Academy!

Learn now

Bybit Bonus Bash. $1,000 Bonus to be Won!

Join now