French Central Bank Supports CBDC as Foundation for New International Monetary System
The Banque de France, the French central bank, has embraced the global perspective on the central bank digital currency (CBDC) discussion, viewing it as the foundation of a new international monetary system. Denis Beau, the first deputy governor at Banque de France, emphasized the importance of considering cross-border issues around CBDCs from the outset rather than as an afterthought. He called the CBDC “the catalyst for improving cross-border payments by enabling the build-up of a new international monetary system.”
Potential Paths for CBDC Development
According to Beau, there are several paths for developing a CBDC. The first involves establishing common standards and interoperability between wholesale CBDCs and legacy systems. The second path, advocated by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), focuses on developing regional or global CBDC platforms. These platforms would facilitate direct exchange of standardized wholesale CBDCs and enable payment versus payment and delivery versus payment transactions.
Beau referenced Project Mariana, a collaboration between Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank. The project explored possibilities for an automated market maker (AMM) and concluded successfully in late September.
Toward Tokenization of Finance
In addition to discussing CBDCs, Beau also highlighted the tokenization of finance. He expressed his belief that the public sector should support the private sector more to unlock the full potential of blockchain while managing risks. According to Beau, tokenized “central bank money availability” and tokenized assets are not competitors but allies.
Hot Take: Banque de France Sees CBDC as Catalyst for a New International Monetary System
The Banque de France has embraced the idea of central bank digital currencies (CBDCs) as the catalyst for a new international monetary system. By prioritizing cross-border issues and exploring various development paths, such as common standards and regional/global CBDC platforms, France is positioning itself at the forefront of CBDC innovation. The successful conclusion of Project Mariana demonstrates the country’s commitment to collaboration and experimentation in the field. Furthermore, the endorsement of tokenization by the French central bank highlights its recognition of blockchain’s transformative potential. With this forward-thinking approach, France is paving the way for a future where CBDCs and tokenized assets work hand in hand.
By
By
By
By
By