Digital Currency Revolution Series: Bank of France Successfully Pilots Blockchain-Driven Digital Euro

The French central bank (Bank of France) reports that they have successfully piloted an initial test of a central bank digital euro based on blockchain technology.

At the beginning of the year, the Banque de France has embarked on an experimental approach to central bank digital currency, intended at exploring with partners the potential contributions of new technologies to improve the functioning of the financial markets and more particularly interbank regulations (so-called “wholesale” central bank digital currency).

The central bank now clarifies that they successfully trailed series of tests to observe whether the concept of digital euro has the potential to strengthen global financial markets. As time progresses, the French central bank will foresee and explore as to how the digital euro performs when it is transacted with other banker.

ECB’s optimism for CBDC is also not a new thing, soon after replacing Mario Draghi who carried dubious eyes on cryptocurrency space, Lagarde has constantly been active in functioning with member states' of central banks to assess "the feasibility of a euro area CBDC in various forms, establishing a task force in this regard is evident.

To substantiate ECB’s stance on CBDC, the First Deputy Governor of Banque de France, Denis Beau, has also recently recommended deploying distributed ledger technology (DLT) for euro payment settlements within the Eurozone.

While at the Second Annual Capital Markets Technology and Innovation Conference, Denis Beau advocatedthe European Central Bank (ECB) that the European Central Bank (ECB) should be liberal in experimenting with distributed ledger technology (DLT) as a way of settling euro-denominated transactions.

The results of this experiment of Bank of France would be an crucial factor for the Banque de France's contribution to the more global reflection led by the Eurosystem on the interest of an MDBC.