French Central Bank Governor: Wholesale CBDC project to be announced in the coming weeks, with live transaction trials set for next year.
The governor of the French central bank announced in Paris that the Eurozone central banks will unveil plans for a central bank digital currency (CBDC) in the coming weeks, aiming to explore financial innovations related to securities settlement and foreign exchange transactions.
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Eurozone Countries Set to Issue CBDC
According to CoinDesk, François Villeroy de Galhau, the Governor of the Bank of France, stated:
Eurozone countries have begun exploring CBDC settlement technology, including issuing the first type of tokenized CBDC. The relevant qualification standards and intent documents will be announced in the coming weeks, and the pilot project will be launched next year, covering real transactions.
Villeroy de Galhau mentioned Wholesale CBDC, which is primarily aimed at financial institutions, while another type, Retail CBDC, is designed for general public use.
The Wholesale CBDC project was proposed earlier this year at a series of meetings convened by the European Central Bank and seems to be progressing faster than the Retail CBDC.
Exploring Blockchain, Smart Contracts
Villeroy de Galhau pointed out that integrating technologies such as smart contracts will allow central banks to manage the money supply more effectively, which will be crucial for central banks to manage inflation and stabilize the financial system.
In addition, central banks will also explore alternative protocols, blockchain technologies, and the distributed ledger technology "DL3S" previously introduced by the Bank of France, a permissioned blockchain with efficient clearing and settlement services.
While the crypto space has long been accustomed to stablecoins, the Bank for International Settlements (BIS) has previously emphasized that stablecoins and cryptocurrencies are not "money" and do not have intrinsic value, calling for clear and updated legal frameworks for the deployment of CBDCs.
BIS calls for countries to establish a legal framework supporting CBDCs, stating that cryptocurrencies and stablecoins are not money.