The Bank of France announced the launch of a pilot program to create a central bank digital currency(CBDC). The project aims to study the risks and benefits of CBDC, as well as the development of the digital euro idea throughout the eurozone.
Plan involves exploring a digitalEuros for clearing and settlements on tokenized financial assets. Earlier, the Bank of France called for the use of blockchain in payments throughout Europe, but does not indicate specific technologies in its latest notification.
The regulator will select up to 10 proposals for the creationCBDC, the main selection criteria of which will be "innovative nature". Offers are accepted from private and legal entities in the European Union.
As the three possible applications for CBDC, the Bank of France names:
- financial instrument settlements
- settlements in digital currencies of other central banks,
- digital asset calculations.
The project will be carried out in three stages:
- development
- analysis,
- implementation.
Regulator notes that experiment is notinvolves the release of cash. At the end of each day, the digital euro tokens used in the payments will be destroyed. Extension of the experiment after completion of current tasks is not provided.
“The decision to create a CBDC should come from the Eurosystem,– said the Bank of France.
Consequently, the Bank of France does not intend to conduct such experiments on a larger scale. "
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