Central Bank Digital Currencies are now being investigated by a growing number of financial institutions in the year 2022. The entire economy of the world is in disarray, and things are only going to get worse from here. Because of the ongoing conflict between Russia and Ukraine, the oncoming winter might utterly destabilize the economies of a number of European countries due to a lack of available electricity. On the other hand, the British Pound and the Euro are seeing a decline in their positions as a result of the inadequate monetary policies that are being implemented by the governments of the UK and EU.
As a result of this predicament, many of the world’s central banks are investigating new methods for exercising control over their own monetary systems, the most prominent of which being the use of cryptocurrencies.
France is interested in incorporating CBDCs into their day-to-day operations.
Already, the French Central Bank is conducting trials on a few different blockchain-based products. As an illustration, they have the Jura project, which is a form of protection that has been implemented as an initial step into the web3 idea. It has achieved a certain level of success and is well-liked among a number of investors. The Banque de France was inspired to press through with their new projects as a result of the results of this pilot project.
One of their forthcoming projects will concentrate on finding ways to provide CBDC with liquidity within a DeFi environment. As part of the endeavor, fully automated market makers will be introduced to the existing securities market in order to ensure the market’s continued viability following the introduction of further digitally created securities. The new pilot project that was unveiled by Villeroy de Galhau, a governor of the Bank of France, would focus on tokenized bonds as the second area of emphasis. One of the most significant offers that the Central Bank aims to provide in the very near future is one that will include the issue of digital bonds on immutable blockchain ledgers.
There is currently a lack of clarity regarding the specifics, but announcements will be made throughout the coming week as more information becomes available. On the other hand, the course that the Banque de France is heading in is already very clear. The regulatory body’s goal is to make the country’s native cryptocurrency accessible to all of its inhabitants and to equip investors with the appropriate resources.
The year 2026 has been set as the target for France’s adoption of the digital Euro.
The country is keeping its fingers crossed that by the end of 2025, it will be able to put the EU’s CBDC into local circulation. The objective remained the same. France, along with Switzerland, Italy, and the United Kingdom, is moving quickly toward widespread use of cryptocurrency.