The Central Bank of France, the Banque de France, has started the launch of an "experiment" for a Central Bank Digital Currency (CBDC). These alleged experiments will provide the information necessary for the development and launch of a functional and operational CBDC, as well as helping to create a digital currency framework for the Eurozone.
Previously, the bank had shown considerable interest in starting a virtual currency, so it subsequently launched a series of in-depth research on the subject. The French authorities are eager to develop and launch a digital currency from the French central bank along the lines of what Sweden is doing that is undertaking such a research and development effort.
As France is a prominent member of the Eurozone, its activity will certainly contribute to shaping the cryptocurrency initiatives of the entire geopolitical bloc.
Experiments on a French CBDC to collect research data
The latest announcement from the central bank again supported the cryptocurrency project with quotation national. The bank has already studied the details of the CBDC, as evidenced by its recent announcements, interviews and job offers to recruit researchers and developers in the crypto sector.
François Villeroy de Galhau, governor of the French central bank, says that the institution is calling on innovative technology companies to join this initiative. Today the private payment network is rapidly expanding and financial technologies are leading to the demand for virtual financial solutions. A CBDC is a natural evolutionary solution that is part of the future financial ecosystem.
A French CBDC could be launched sooner than expected
The central bank governor added that other countries are actively pursuing the development of the virtual currency and now the time has come for France to contribute to these efforts.
The experiments will focus on various aspects, including the launch of a French CBDC, the development phase, the exploration of potential technical challenges and the study of the impact of a CBDC on the conventional economy.
In addition, the experiments will cover a number of potential CBDC scenarios, including a digital asset payment system, an interchangeability with other central bank payment systems and the ability to make payments for other financial instruments.
In particular, the experiments will measure the potential impact of a digital currency of the French central bank on traditional monetary infrastructures, macroeconomic factors, legal and fiscal obstacles and regulatory frameworks.
The Bank of France does not insist on the implementation of the blockchain for its CBDC
Although the Bank of France previously requested blockchain-based settlement systems in Europe, the bank has now said it does not want to impose any specific technology within its recently announced CBDC experiment program.
Therefore, the French central bank will select a maximum of 10 CBDC-related questions from groups or individuals, establishing "innovative nature" as the main selection criterion. Applicants who meet the requirements can submit an application until May 15, 2020, while the selection of applications will take place on July 10, the bank announced.