Wednesday, May 25, 2022
Home Crypto News Market Banque de France Announced Results Of Successful Central Bank Digital Currency (CBDC)...

Banque de France Announced Results Of Successful Central Bank Digital Currency (CBDC) Experiment

- Advertisement -
Follow-Us-On-Google-News

The Banque de France presented the results of experiments that focused on settlements of international transfers using the Digital euro.


 

According to a report published by the Banque de France, nine experiments with the digital euro were carried out, and seven of them were successfully completed by November 8, 2021. The regulator tested the digital currency of the Central Bank using platforms based on public and private blockchains, as well as using distributed ledger technology (DLT).

It turned out that the digital currency of the Central Bank can function effectively using different blockchains and contribute to the safe development of tokenized financial markets while maintaining the key role of the digital currency of central banks.

The Banque de France concluded that the tokenization of securities would provide transparent tracking of transactions and speed up settlements. In addition, it will facilitate structured finance as well as trades in small-cap bonds and OTC products.

DLT and tokenized assets can also reduce associated risks and reduce the number of counterparties. At the same time, the Banque de France argues that the use of crypto assets or stable coins as a settlement asset implies regulatory and financial risks, despite attempts by international regulators to control the cryptocurrency industry.

Nathalie Aufauvre, Director of Financial Stability and Operations at the Bank of France, commented on the initiative:

“Tokenized financial assets, when combined with a central bank’s digital currency, can provide secure settlements and promote the safe development of innovation. Government stablecoins will improve the efficiency of cross-border payments.

 

Banque de France writes:

“The experiments explored different ways in which central banks could make CeBM available for securities settlement using DLT-based platforms, including by leveraging existing infrastructures such as TARGET services in Europe.

The experiments indicated how a wholesale CBDC could be used to complete crossborder transactions, including cross-currency payments.

The experiments also tested several ways in which central banks could retain control over CeBM on DLT, notably by leveraging blockchains’ ability to implement programmability features. Overall, they showed that these technologies provide several tools for central banks to retain control over CeBM from a technical perspective.

Finally, Banque de France’s experiments involved the use of various technologies, including private and public blockchains, as well as other distributed systems. They highlighted that a W-CBDC can be implemented on various types of DLT and would be an effective means of payment, enriching CeBM with new functionalities and use cases as well as promoting innovation in financial markets.”

The French Central Bank began experimenting with the digital euro last year.

- Advertisement -

Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Dogecoin Creator Says Terra 2.0 Launch Will Show the Dumbness of Cryptocurrency Gamblers

The Dogecoin creator still thinks the upcoming Terra 2.0 will encounter major issues along the way.   window.coinzilla_display...

Binance, Huobi, and Other Top Exchanges To Support Terra 2.0

Terra 2.0 Has Passed Voting Stage, And Top Exchanges are Already Getting Onboard. window.coinzilla_display = window.coinzilla_display ||...

Women in Finance: How Could Cryptocurrency Help Breach the Gender Gap?

The Financial Conduct Authority (FCA) has insisted that leadership boards of listed companies should be comprised of at least 40% women. Additionally, at least...

Can Quitriam Finance (QTM), Cardano (ADA), And Hedera (HBAR) Become Market-Leading Coins?

The number of cryptocurrencies on the market is soaring every day, making investing in them increasingly difficult due to the amount of opportunities. Here...

Lido Finance Will Not Launch on Terra 2.0 as Community Votes Against the Move

The Lido Finance community does not want the project to relaunch on Terra 2.0. As Terra edges closer to its much-anticipated fork that will give...

Terra’s Do Kwon Refuses Claims That He Lobbied Korean Exchanges To Accept Terra 2.0

Terra’s Do Kwon Refutes Claims That He Lobbied For Terra 2.0 To Be Accepted By Korean Exchanges. Reports are circulating in the crypto space that...

You Can Now Pay For Hotels, Airlines, Rental Services Worldwide With Shiba Inu as XcelTrip Adds Support for Shib

  Shiba Inu holders can now book 2.30 million hotels and over 450 airlines using their SHIB holdings. ...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.