Bank of France: CBDC experiments will prompt a review of the regulatory framework

Planned tests by the Bank of France of the digital euro will determine whether the current legislative framework is adequate for the launch and circulation of a national CBDC. This view was expressed by Deputy Governor Denis Bo, writes The Block.

The monetary regulator began studying the use of the digital euro for interbank payments in March this year. After successes in three potential use cases for France’s CBDC, additional trials were announced.

During a speech at the Paris blockchain summit, Denis Bo stressed that the development of the digital euro is expanding in scope.

“The CBDC experiments — there will be eight — will help us not only explore the potential of technologies, but also find out from participants how the regulatory landscape might look tomorrow. We are interested in opinions on methods of exchanging financial instruments for CBDCs, improving conditions for cross-border payments, and additional ways of providing CBDCs to financial institutions. The experiments will answer whether the current regulatory framework needs to be revised,” — said the official.

The Deputy Governor of the Bank of France stressed that CBDC experiments will increase readiness for its launch if such a decision is made.

Earlier, ECB official Holger Neyhaus stated that the regulator will begin to develop a plan to launch the digital euro in mid-2021.

German Finance Minister Olaf Scholz, amid news of a possible launch of the Diem (formerly Libra) stablecoin in January 2021, urged ECB officials to accelerate the pace of research.

Earlier, ECB President Christine Lagarde said that the EU’s sovereign currency will remain at the core of its payments system. Prior to this, the regulator head ruled out rushing the launch of CBDC — could take from two to four years.

What and why central banks are creating digital currencies (CBDCs)

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