November 27, 2022

Central Bank of France proposes using blockchain to improve financial system

Central Bank of France proposes using blockchain to improve financial system

First Deputy Governor of the Bank of France Denis Bo called for the introduction of payment and settlement systems based on distributed registry technologies in the EU.

Speaking at a conference on technology and innovation in capital markets, he said that using DLT would have a positive impact on the European financial system.

In particular, Denis Bo said that asset tokenization, combined with the introduction of blockchain-based solutions and the widespread use of distributed registry technologies, to store and transfer these assets, help better meet the needs of the market. Having added that DLT will also simplify gross and foreign currency settlements, recover from operational incidents, and also increase the stability of the system as a whole.

As a result, the First Deputy proposed the ECB to beginto experiment with new technologies in order to improve the working conditions of central banks, as well as develop crypto assets, which, he said, can be used instead of traditional money for settlements between banks of different levels.

Although he noted that in the process of introducing innovations, problems may arise associated with the risk of erratic approaches and differences in the adaptation of market infrastructure.

In addition to France, German officials and banks also support the idea of ​​creating a digital euro.