France Declares to Research on State-backed Blockchain-based Cryptocurrency

The Central bank of France, in a recent speech, declared that they would research a state-supported blockchain-based digital currency. Denis Beau, Banque de France’s First Deputy Governor, expressed that the eurozone needs to develop a Central bank digital currency (CBDC) because “disorderly approaches and heterogeneous adaptations” would develop during its absence.

“As a major provider of critical wholesale clearing and settlement services in euro, [the Euro zone] should be open to experimenting with these innovations to revisit and possibly improve the conditions under which we make available central bank money as a settlement asset,” said Beau.

He further added that Banque de France is open for experiments in that area. The bank, along with the European Central Bank (ECB) and other central banks of the Euro system, is looking to materialize these experiments together.

Beau expressed that blockchain solutions are additionally being inspected for cross-border payment solutions inside the EU. As of now, the residents of the EU wait for longer periods for their payments to clear globally.

Moreover, Beau said, “Tokenized assets may give that method a jolt.” By combining with Distributed ledger technology (DLT), tokens could consistently move funds and will aid in answering market demands, he added.

Besides, Banque de France has been one of the most candid supporters of DLT. From October, it started looking for a blockchain analyst to assist it with developing a currency implementation program.

As indicated by Beau, the present financial model outcomes are quite costly and vulnerable to assistance. By using blockchain, cross-border payments can be completed flawlessly at a small amount of price, by answering the demands of the markets.

As per Beau, Banque de France was the first central bank on the planet to build up a blockchain registry framework.