Banque de France, the central bank of France, announced that it had selected eight developers as part of a massive initiative to test digital currency solutions. Cryptocurrency like Bitcoin and other excluded From Central Bank Experiments.
Banque de France (BdF) said the experiments would cover a variety of areas but notably not the domain of crypto-asset transfer and begin “in the days ahead.” The list of candidates includes many major banks among other firms:
- Seba Bank
- Société Générale – Forge
BdF says there will be three aspects to the trial. Central Bank digital currency (CBDC) trading for digital assets, checking “the rules” for cross-border payments in CBDC, and revisiting the process of issuing digital currency from the central bank.
BdF had successfully carried out a test based on a blockchain developed by its team, in order to do an inter-bank payment with Société Générale – Forge, as reported on 20 may 2020.
“The lessons learnt from these experiments will be a direct contribution to the more global reflection conducted by the Eurosystem on the value of a central bank digital currency.” says BdF.
Nathalie Aufauvre and Valérie Fasquelle, leading the CBDC project, explain for Le Monde that globally CBDC aims at tackling cash loss, the rise of cryptocurrencies, but also keeping payments secure, and supporting innovation, or including financially emerging countries such as Morocco. Read also : Fintech, Blockchain and Green energy in Morocco
Sweden for instance is planning to balance the cash disappearance with the launch of e-krona. Bitcoin, launched in 2009, and the Libra project announced in 2019 have the serious potential to depreciate traditional currencies.
Eurosystem’s e-euro reflections seem to be a necessary step to maintain a worldwide influence against the dollar, Libra, and as E-Yuan is currently tested in China. The experiments will have much further reaching implications for the central bank’s decision-making processes, which, in addition to helping establish and enforce Europe’s monetary policy in France.
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Image: Oleg Mityukhin
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