Representatives of the Banque de France, France’s central bank, took a global perspective to discuss a central bank digital currency (CBDC), describing it as the basis for a new international monetary system.
On October 3, Denis Baux, First Deputy Governor of the Bank of France, Named A central bank digital currency is “the catalyst for improving cross-border payments by enabling the construction of a new international monetary system.” The official stresses the need to consider cross-border issues related to central bank digital currencies from the beginning and not as an afterthought.
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Poe sees several paths to developing a central bank digital currency. The first is to develop common standards and interoperability between wholesale CBDCs and legacy systems. The second – promoted by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) – is the development of regional or global CBDC platforms. CBDCs can be standardized wholesale to be exchanged directly on these platforms and conduct payment-for-payment and delivery-for-payment transactions.
The Senior Deputy Governor nodded to the example of Project Mariana, which explored the possibilities of an Automated Market Maker (AMM). The project, which involved the Bank of France, the Monetary Authority of Singapore and the Swiss National Bank, was successfully completed in late September.
The official spoke not only about central bank digital currencies, but also about the tokenization of finance. He believed that the public sector must support the private sector more than ever to enable the full potential of blockchain technology while reducing risks. In his belief, the “availability of central bank money” and token assets are allies, not competitors.