Based on a desire to avoid fragmentation in settlement procedures, the central bank will review and adjust the conditions under which it provides financial intermediaries with central bank money.
France’s central bank, the Banque de France, has called for applications to test the integration of a central bank issued digital currency (CBDC) in the exchange and settlement of tokenized financial assets between financial intermediaries.
Based on a desire to avoid fragmentation in settlement procedures, the central bank will review and adjust the conditions under which it provides financial intermediaries with central bank money. “We as central banks must want to take up this call for innovation,” said François Villeroy de Galhau, governor of the Banque de France.
The aim of the experiment is to show how conventional uses for central bank money can be achieved via a CBDC; identify benefits, such as how a CBDC might foster financial innovation; conduct an analysis of the potential effects on financial stability and test the regulatory environment.
Those wishing to participate can submit applications individually or as part of a temporary business grouping. The application window closes at 3pm CET on Friday, May 15.
