At certain times, it almost seemed as if central bank digital currencies would never exist. Today, that situation looks very different once again. Banque de France wants to push its CBDC and begin using it for interbank settlements.
Banque de France Isn’t Giving up
In Europe, talks about a central bank digital currency have persisted for years. More often than not, every new announcement resulted in no real breathroughs, despite collecting valuable data and building new solutions. The vision by Banque de France seems more fleshed out, as it effectively wants to build a CBDC for interbank settlements.
To do so, the central bank will need to conduct several tests. A list of candidates has been announced this week. One of the selected partners is SEBA Bank, a Swiss FINMA-licensed bank. The firm is known for bridging the gap between digital and traditional assets.
SEBA Bank CEO Guido Bühler states:
“We at SEBA Bank are very proud of this achievement, and to be selected by Banque de France honors us. It is a proof of concept that our service offering and deep expertise of the industry is of great value and a relevant contribution to develop the ecosystem of digital currencies and assets.”
Other candidates include Accenture, Euroclear, HSBC, Iznes, LiquidShare, ProsperUS, and Société Générale. A mix of well-known financial institutions and other companies who are trying to carve out their legacy in the financial sector.
What Comes Next for this Central Bank Digital Currency?
The first order of business is to conduct how well the CBDC can be distributed. A strong focus will also lie with using it for cross-border payments to improve the overall working of existing financial markets.
All of these experiments will contribute to the studies by Eurosystem. That outfit has been trying to determine the viability of a central bank digital currency under the current financial climate. Regardless of the outcome of these new trials, it will not lead to an immediate issuance of a CBDC on a larger scale.
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