France’s Central Bank Requests Proposals For CBDC ‘Experiments' To Show Use Cases

The Banque de France made public on March 27 a request for digital currency experiment applications, in an attempt to understand the mechanisms and risks CBDCs pose in the eurozone.

France comes upfront when it comes to the digital currencies debate, being the eurozone member with the highest profile as far as launching a CBDC goes next to Sweden, where the Riksbank is also trying to digitize currency using the krona.

4 Years Since the Banque de France is Advocating Fintech Projects

Banque de France has been advocating experimental and more advanced fintech projects since 4 years ago. It has been posting jobs and holding speeches on CBDC development all the time. Here’s what its governor, François Villeroy de Galhau, said in a speech on CBDCs from December 4:

“We as central banks must and want to take up this call for innovation at a time when private initiatives – especially payments between financial players – and technologies are accelerating, and public and political demand is increasing.”

3 CBDC Usage Cases Addressed

France has been tackling 3 CBDC use cases, such as payment against digital assets, payments against financial instruments and payments against other central banks. It doesn’t advocate money creation and says the bank’s tokens books should be destroyed when each payment day ends. Furthermore, it plans to examine the potential impact of CBDCs on market infrastructures, regulatory frameworks, macroeconomic factors and monetary policy.

The Development of a Blockchain-Based CBDC Not Necessary

When it comes to technology, the bank said that it’s neutral and doesn’t necessarily want to develop a blockchain-based CBDC, being open to innovative solutions. On July 10, 10 project applicants that have to come from the EU will be selected. However, all this doesn’t mean the bank is going to necessarily issue a CBDC. Here is what it said in a statement:

“Indeed, any decision to create a CBDC is a matter for the Eurosystem. Consequently, the Banque de France does not intend to perpetuate or conduct such experiments on a widespread basis.”

Christine Lagarde, who has been France’s minister of economy and now runs the European Central Bank, has always been pro the ECB developing a CBDC, ever since she became the head of the institution in November 2019.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Oana Ularu
Oana Ularu
Curious about what’s going on with all the money in the world, Oana is bringing you the latest news in the crypto world. She’s aware of the fact that you need to know everything that’s happening on the financial scene in order to play the cryptocurrency market, so you can count on her to share with you every little detail on what matters.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,428FansLike
2,793FollowersFollow
4,179FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin’s Intrinsic Value has Effectively Doubled After Halving: JPMorgan Report

Bitcoin “markets effectively priced in a 25% decline in the amount spent on energy per day,” says the “Global Markets Strategy: Flows & Liquidity”...

China’s National People’s Congress (NPC) Suggests a Government-Backed Blockchain Fund

The National People's Congress (NPC) in China has proposed the creation of a government-backed blockchain fund in its ongoing annual meeting. The Chinese legislative body...

The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May

Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%. Meanwhile, Network Demand Score which is a metric incorporating network...

Ledger and Trezor Crypto Wallets Dismiss ‘Rumored’ Hack Through a Shopify Exploit

A hacker has allegedly compromised the databases of Ledger, Trezor, Keepkey and Shapeshift hard wallets in a Shopify exploit. These storages are considered to...

Tulip Trust Addresses are Used by Someone to Sign “Craig Wright is a Liar and a Fraud”

Some of the addresses that Craig Wright, who claims himself to be the pseudo-anonymous bitcoin creator Satoshi Nakamoto, has filed in the ongoing court...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today