France’s central bank prepares the way for the digital euro as it is about kicking off tests for it.
It was made known some hours ago that Banque de France will be working with eight firms to know how good its CBDC is for interbank settlements.
The chosen few for the pilot test include Accenture, Societe Generale, HSBC, Seba Bank and LiquidShare.
It was in March that Banque de France announced that interested candidates for the pilot test should submit their applications. The central bank informed the applicants that it would consider only those whose services match the use of the CBDC. It also said those whose services promise a transformation would be considered above others.
The central bank’s aim with working with these companies is to discover “new methods of exchanging financial instruments.” The test will be done for some months. During the period, the bank and the players will brainstorm on the possibilities of using the digital euro, not just within France but beyond.
It is worthy to mention that the Central Bank of France is more interested in the use of the CBDC for wholesale purposes. That means it wants to limit the use of the digitalized currency for interbank regulations instead of providing for consumers’ motives.
How France is performing for the digital euro
France has been leading other countries in Europe in testing the CBDC. It made a remarkable achievement in May as the first country to test the digital euro on a blockchain with the support of Societe Generale.
Even though it is yet to be confirmed if France’s efforts so far will be picked on a larger scale for Europe, its central bank has been selected to stand for the Eurosystem together with the German Federal Bank (Deutsche Bundesbank). The collaboration is one of the steps taken by the Bank for International Settlements for its new project called the “BIS innovation Hub.”