Banque de France reports back on wholesale CBDC program

The Banque de France has published an upbeat report on its series of experiments with a wholesale CBDC but says its work has also thrown up new questions.

The Central Bank of France launched its global CBDC program last year, working with private banks and professional companies as well as other government officials on nine exams, seven of which were completed.

The bank said tests show how CBDC can be used to pay for things, including cash and cash equivalents.

Experiments have also shown several ways in which central banks can control central bank financing over DLT, particularly using blockchains that enable system components to function.

The plan includes the use of a variety of technologies, including private and public blockchain, as well as other distribution services, to demonstrate that the CBDC region can be implemented in a variety of DLT systems and “It will be cost-effective, enriching  Central bank with new jobs and news as well as new financial markets. “

Nathalie Aufauvre, head of the Banque de France pilot program, said: “With the advent of financial instruments in a guaranteed way, we have shown that CBDC, with the potential of new technologies, can ensure the secure transaction of these assets.

“We have also indicated that the full CBDC will help in cross-border trade and investment as it will improve the efficiency of trade chains.”

Thus, the examples also raise questions, the bank said, an important factor in the full utilization of the CBDC, which was available to many market participants, could influence the work of financial advisors and lenders.

“So it is important for central banks to maintain full control of the entire CBDC after its release,” the report said.

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