Banque de France has announced a list of partners with which it intends to build a central bank digital currency. The bank called for applications to experiment the use of central bank digital currency for interbank settlements.
The 8 applications selected included:
- Seba Bank
- Société Générale – Forge
The selected applicants will propose experiments which will allow exploration of new ways to exchange financial instruments (excluding crypto-assets) for central bank money.
The experiments will also be testing the settlement in central bank digital currency to improve executing conditions for cross-border payments and revising the arrangements for making central bank money available.
The Banque will start to collaborate with each of the eight candidates to carry out the pilot projects over the coming months. The experiments proposed by the successful candidates will enable:
- The exploration of new methods for exchanging financial instruments against central bank money
- Testing of the regulation in central bank digital money (to improve the conditions of execution of cross-border payments)
- Revisiting of the methods of making central bank money available.
The lessons learned from the Banque de France’s experiments will contribute to a better understanding:
- For the Eurosystem
- Of the possible benefits of a CBDC
All these experiments, with the Banque de France’s CDBC initiative, represent a commitment to innovation in the central banking environment. It is also relevant that the Banque, along with the Deutsche Bundesbank and the European Central Bank, is hosting a joint European innovation centre within the framework of the Innovation Hub of the Bank for International Settlements.