The First Deputy Governor at Banque de France supports Central Bank digital currency (CBDC), promoting it as a foundation of the new international monetary system.
In a 3 October speech, Denis Beau, First Deputy Governor of the Banque de France, referred to the CBDC as the “catalyst for enhancing cross-border payments by facilitating the development of a new international monetary system.” The official emphasizes the importance of addressing cross-border issues associated with CBDCs from the outset, not as an appendix.
Beau envisions several potential development routes for CBDC. The first is the establishment of interoperability and common standards between wholesale CBDCs and legacy systems.
The second is the development of regional or global CBDC platforms supported by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).
Wholesale CBDCs could be standardized so they can be exchanged directly on these platforms and perform transactions involving payment against payment and delivery against payment.
The First Deputy Governor acknowledges Project Mariana, which investigated the viability of an automated market maker (AMM). Late in September, the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank completed the undertaking.
In addition to discussing CBDCs, the official also addressed the tokenization of finance. He opined that the public sector must support the private sector more than ever to enable blockchain’s maximum potential while minimizing its risks. He believes tokenized “central bank money availability” and tokenized assets are allies, not competitors.
