April 19, 2024
Banque de France's global vision on CBDCs
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First Deputy Governor of Banque de France Stresses CBDCs’ Crucial Role in Cross-Border Payments

Representatives from the Banque de France, the French central bank, have embraced a global perspective when it comes to the central bank digital currency (CBDC) discussion, viewing it as the cornerstone of a new international monetary system.

Denis Beau, the first deputy governor at Banque de France, underscored the significance of CBDC in enhancing cross-border payments, describing it as the catalyst for improving cross-border payments by enabling the build-up of a new international monetary system. Beau stressed the importance of addressing cross-border issues related to CBDCs right from the beginning, rather than treating them as an afterthought. Beau outlined various avenues for the development of CBDCs. The first involves establishing common standards and interoperability between wholesale CBDCs and existing systems.

The second approach, endorsed by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), focuses on the creation of regional or global CBDC platforms. These platforms would allow wholesale CBDCs to be standardized for direct exchange, facilitating payment versus payment and delivery versus payment transactions. Beau cited the successful completion of Project Mariana as an example, a collaborative effort involving Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank that explored automated market maker (AMM) possibilities and concluded in late September.

In addition to discussing CBDCs, Beau also addressed the tokenization of finance. He expressed his belief that the public sector should provide greater support to the private sector to unlock the full potential of blockchain technology while managing associated risks. Beau emphasized that tokenized central bank money availability and tokenized assets should be viewed as allies rather than competitors.

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