French Central Bank Launches Pilot Program for Testing State Cryptocurrency

The Bank of France announced the launch of a pilot program in which it will test the development anduse of state cryptocurrencies for interbank settlements.

Use of tokenized financial assetscan speed up interbank payments. French financial institutions can already apply to participate in the testing. Applications are accepted from any companies or residents of the European Union until May 15. The selection of participants will take place on July 10.

Moreover, the Central Bank of France does not impose anycertain technologies in the framework of testing state cryptocurrency. The maximum number of participants in the pilot program is limited to 10, and the main criterion for selection will be the “innovative nature” of the proposed technology.

As part of testing, the Central Bank of France plansfocus on the use of state cryptocurrency for payments with traditional financial instruments, with digital currencies of other securities, as well as with digital assets. The document emphasizes that the bank does not plan to create a new currency and will destroy the tokens involved in the testing.

“The experiments will be the contribution of the Bank of France towider discussion within the European Union, after which a decision will be made on the creation of a state cryptocurrency. Testing will take place in a limited period of time and volume, ”the statement says.

Last December, the Chairman of the French Central BankFrançois Villeroy de Galhau said the bank will begin testing the state-owned cryptocurrency for financial institutions in the first quarter of next year. However, apparently, the regulator's plans have changed.

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