In a recent speech, the central bank of France announced they will explore a state-backed blockchain-based digital currency.
Banque de France First Deputy Governor Denis Beau stated the eurozone needs to create a central bank digital currency (CBDC) because “disorderly approaches and heterogeneous adaptations” may develop in its absence.
“As a major provider of critical wholesale clearing and settlement services in euro, [the Eurozone] should be open to experimenting these innovations in order to revisit and possibly improve the conditions under which we make available central bank money as a settlement asset,” Beau said.
“We, at the Banque de France, are therefore quite open for experiments in that direction, together with the European Central Bank (ECB) and other central banks of the Eurosystem, in particular with regard to a wholesale CBDC,” he added.
Beau also stated blockchain solutions are also being examined for cross-border payment solutions within the EU.
Currently, EU residents typically wait extended periods for payments to clear internationally.
According to Beau, the current banking model results in an expensive, vulnerable service.
Utilizing blockchain, cross-border payments could be completed seamlessly at a fraction of the price “answering market’s demands,” Beau said.
Banque de France has been outspoken regarding blockchain in the past.
In October, Banque de France announced they were looking for a blockchain analyst for its digital currency implementation program.
According to Beau, Banque de France was the first central bank in the world to develop a blockchain registry system.