France paves way for digital euro, selects 8 potential partners to experiment to CBDC

France is pioneering in the foundation of digital euro. It chooses eight potential partners for experimental trials with CBDC for interbank settlements

By · Jul 20, 2020 . 4min read

Photo by Anthony Choren on Unsplash

On 20th July, the Central bank of France released an official statement that announced the selected candidates for the CBDC. The latter will be instrumental in conducting experimental trials with the CBDC for interbank settlements. Banque De France, the Central bank of France has shortlisted eight fin-tech partners for the CBDC experiment. The selection process was not just on the basis of blockchain solutions alone but also on utility and innovation grounds. The eight potential selected applicants are :

  • Accenture
  • Euroclear
  • HSBC
  • Iznes
  • LiquidShare
  • ProsperUS
  • Seba Bank
  • Societe Generale – Forge

With the designated candidates, the experiment aims to scout different methods that would be instrumental in exchanging financial assets. It further aims to chalk out clear regulations that would ease cross border payments for the state-owned virtual currency. Lastly, it aims to revisit its regulations to make the state-owned digital currency easily accessible. Moreover, the central bank will only focus on state-owned digital currency excluding cryptocurrency like Bitcoin.

This particular move indicates the interest of the potential partners in order to innovate the digital financial ecosystem by contributing to testing the CBDC. It will further lead to the smooth functioning of financial markets with respect to interbank settlements.

Banque De France is the pioneer in laying the foundation for the digital euro. Hence, the outcome of the experiments will lead to a direct contribution in creating a global Eurosystem. Not only France but countries like the Netherlands and Italy are also working towards the development of global Eurosystem in terms of regulatory guidelines and testing grounds for digital euro.

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