The French central bank calls on countries to participate in digital currency trials, and applicants must have an "identity" in the European Union

According to BlockBeats, on March 27, the Bank of France (Banque de France) released a proposal for the "experimental" application of central bank digital currency. This will help the Bank of France understand the risks and mechanisms of CBDCs and also help the Eurozone to have dialogues in the field of digital cash.

According to reports, the French pilot project covers three CBDC use cases:

Payments for financial instruments;

Payments with other central bank digital currencies;

And digital asset payments.

However, according to the Bank of France, their pilot project will not create new money. All exchanges will go through the bank's own books and the tokens will be destroyed at the end of each payment day. In addition, the project will also study the potential impact of CBDC on market infrastructure, monetary policy, macroeconomic factors, and legal and regulatory frameworks.

The bank said the technology is neutral, meaning applicants do not necessarily need to develop a blockchain-based CBDC. "Applicants must have an established identity in the European Union." The French central bank (Banque de France) will select up to 10 candidates on July 10. "In fact, any decision to create a CBDC is a matter for the Eurosystem," the French central bank said. "The French central bank therefore does not intend to continue or conduct such experiments on a broad scale at this time."

Original address: https://www.coindesk.com/french-central-bank-puts-out-call-for-digital-currency-experiments