Central Bank of France is conducting sweeping experiments whose outcomes could change the way currencies work. But cryptocurrencies wont be included, statements reveal. National Bank of France, Banque de France released a statement on Monday regarding the names of eight participants who would be included in the series of experiments. The bank works in collaboration with the European Central Bank to regulate and determine the monetary policies in the European continent.
The list of participating entities include consulting mogul Accenture, settlement sector leader Euroclear, HSBC Bank, Iznes – a French firm, Ethereum platform LiquidShare, ProsperUS – a relatively new start up, crypto bank Seba and Forge – Societe Generale’s digital capital markets spinoff.
The experiments which will be rolled off soon would make use of several parameters including testing regulation optimized by utilization of digital currency for improved cross-border payments, analysis of methods to cater availability of central bank digital currency. The most important parameter being “to explore new methods of exchanging financial instruments, excluding crypto-assets, for central bank money.”
The statement released by Central Bank of France, world’s leading central bank, displays how the prestigious institutes are scrambling to learn more about cryptocurrencies and its “blockchain technology” propounding, but to a certain limit. The statement was completely devoid of the cryptocurrency-related terms like “blockchain” – the shared ledger that helps in existence of bitcoin operations – and “distributed ledger technology” – the term to describe larger group of technologies.
In coming days Banque de France will be conducting a series of experiments with all the participating candidates. The statements released by the central bank indicates that some of the candidate studies might take as long as few months. Bank has reportedly asked the participant companies to respond to bank’s call for CBDC experiments by May 15 and submit the applications.
Experts say that the experiments’ outcome can have a long-term implications on how monetary handling is carried out in Europe, impacting Central Bank’s decision-making process as well as Europe’s monetary policy.
According to the translation of central bank’s statement by Google, “The strong mobilization around this call for candidates testifies to the interest of the actors of finance and technology for this approach aiming to explore the potential contributions of a digital money issued by the central bank to improve the functioning of financial markets, in particular interbank regualtions.”
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