The central banks of France and Switzerland have announced that they have begun experimenting with a wholesale central bank digital currency (CBDC) for cross-border payments.
According to a press release, the Eurosystemis actively developing and introducing innovations in the field of digital payments. The Banque de France supports this endeavor and is convinced that the use of CBDC will increase the efficiency and security of financial transactions.
To advance in this direction, the French agreed with colleagues from Switzerland to conduct closed testing of the wholesale optiondigital currency of the central bank. During the experiments, CBDC will be used for settlements between banks of both countries.
At the same time, the statement notes that, despite the start of testing, the participants do not plan to publicly issue a digital currency in the near future.
This is not the first initiative of the Bank of France in this direction. Last year, the Central Bank, together with the financial conglomerate Societe Generale, successfully tested the digital euro.
</p>Read this:
Bank for International Settlements tested wholesale CBDC
Bank for International Settlements begins CBDC tests
Governor, Bank for International Settlements: “CBDC opens up new opportunities for the financial sector”
Central Bank of Switzerland and Bank for International Settlements will test digital currency
The head of the Central Bank of France named the advantages that the authorities of European countries can get from the joint launch of CBDC with the private sector
Bank of Japan will start testing CBDC this year