Central Bank of France began to look closely at CBDC

Central Bank of France began to look closely at CBDC

Central bank digital currencies: foundational principles and core features

Contents

Central Bank of France started looking at CBDC
CONTENT

  • Central Bank of France wants to study in more detail the possible application of CBDC in practice

  • Deadline for submitting applications for participation in the accelerator – May 2020

  • France for digitalization, but against replacing money

International consortium of news organizations, developing standards for transparency.

The country’s main regulator calls on everyone who can share unique ideas about CBDC Paper bills and coins may be a thing of the past due to a new financial instrument – Central Banks Digital Currency (CBDC). As … More, take part in the accelerator.

Central Bank of France Banque de France Banque de France calls for experiment to use digital euro issued for interbank settlements.

According to the published statement, the main goal of the experiment is to explore the possibilities offered by the new technology and to identify specific cases of integrating the central bank digital currency (CBDC) into innovative procedures for clearing and settling tokenized financial assets..

The regulator notes that the main objective of the experiment is not to replace existing forms of money issued by banks, but to determine how innovative technologies can improve the efficiency and fluidity of payment systems and financial infrastructure, allowing a better financial sector to ensure uninterrupted financing the economy.

The bank said that a number of private initiatives have already proposed new digital channels and ways of exchanging funds, especially in Europe, to improve the functioning of the market infrastructure. However, the proposed projects are aimed at creating and distributing digital tokens that are intended to replace cash or provide financial instruments.

Central Bank of France started looking at CBDC

The bank includes stablecoins, utility tokens, and digital analogues of securities among such initiatives..

The main objectives of the experiment

The French central bank emphasizes that the pilot program will have three objectives: 

Central Bank of France started looking at CBDC
  1. show how “traditional” interbank settlements can be done using CBDCs based on various technologies;
  2. identify the benefits of CBDCs for the current ecosystem of market and payment infrastructures (including productivity gains) and understand how CBDCs can foster financial innovation;
  3. analyze what will be the impact of the introduction of CBDC on financial stability, monetary policy and the regulatory environment.

Application deadline – until May 15, 2020 at 17:00 (Moscow time).

Interviews with Applicants Who Have Submitted Eligible Applications: June 2020.

Selection of applications: July 10, 2020.

Zero-sum game

France has repeatedly made it clear that it is not against the digitalization of the traditional economy, but against any attempts to replace the entrenched cash with other assets, including Libra.In June 2019, Facebook announced preparations for the release of the digital currency Libra. The social networking project immediately attracted attention … More from FacebookIn June 2019, Facebook announced preparations for the release of the digital currency Libra. The social networking project immediately attracted attention … More.

Central Bank of France started looking at CBDC

Renowned French economist and former member of the Board of Governors of the European Central Bank, Benoit Cours, for example, has already stated that any digital asset like bitcoin will always depend on existing fiat counterparts issued by central banks..

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