The Deputy Governor of the Financial institution of France discusses the progress of the CBDC and regulatory modifications
Deputy Governor of the Bank of France Denis Beau spoke at the Paris Blockchain Summit on the advances made with the Central Bank's digital currency (CBDC) and discussed possible regulatory changes and the legal framework.
During the Paris Blockchain Week 2020 summit on Thursday, Beau said there had been a "hands-on approach" to the bank's experiment to bring a digital euro to the general public.
Earlier this year, the Bank of France launched a call for proposals for experimental applications for the central bank's digital currencies. The aim of the project was to help the French central bank to understand the risks and mechanisms of CBDCs and also to contribute to the digital cash talk of the euro zone.
In May, the bank began working closely with Societe Generale to test digital transactions, the tokenization of securities and the settlement of a transaction on the private blockchain.
The bank is currently analyzing whether tokenization can help with cross-border payments, which it describes as "costly", causing long delays in advance of settlement and creating uncertainties about money laundering and terrorist financing (anti-money laundering / terrorist financing). checks, commented Beau.
In his remarks, Beau said: “The coming CBDC experiments – there will be eight of them – will help us not only to examine the potential of the technology, but also to ask the actors in the ecosystem what the landscape of tomorrow might look like Topics such as Fundamental are the methods of exchanging financial instruments for CBDCs, improving the conditions for the execution of cross-border payments or new ways of making CBDCs available to the players in the financial sector. These experiments, in turn, will lead us to assess whether the current legal framework needs to be adjusted as we are conducting these experiments within the current legal framework. "
In 2020 the European Central Bank (ECB) stepped up its work on the digital euro. Most recently, ECB President Christine Lagarde addressed the competition for control of payments on a global level and the considerations for a CBDC for retail in the euro zone.
Lagarde believes a digital euro would allow the bloc to be on the cutting edge of innovation, but cautioned about the lack of payment integration in Europe, suggesting foreign providers have taken the lead.
Both France and Germany were also against foreign companies like Facebook, which introduced digital currencies that could compete with fiat money. Europe pushed the idea of a possible launch of the Libra (which has since been renamed Diem) on European soil.