Many central banks around the world are considering their own digital currencies to start competing with cryptocurrencies such as bitcoin. Some countries have speeded up their work on this technology after Facebook announced its plans for the global digital currency Libra in June 2019, but only a few have taken real steps in this direction, while France has just successfully tested its CBDC central bank currency, the digital euro.
France will continue testing
According to the official announcement of 20 May by the Banque de France, France has become the first country to successfully test the digital euro, based on blockchain technology. The Central Bank of France confirmed that on 14 May, it carried out the test by issuing security tokens and then counting them in digital euro. We can read in the announcement:
“Since the start of the year, the Banque de France has embarked on an experimental approach to central bank digital currency, aimed at exploring with partners the potential contributions of new technologies to improve the functioning of the financial markets and more particularly interbank regulations (so-called “wholesale” central bank digital currency).”
The Bank will cooperate with other entities in the coming weeks in order to carry out more in-depth tests. These will also include tests on "interbank regulation".
CBDC - the currency of the future
Many countries are trying to explore the potential uses of Central Bank digital currencies (CBDC) in their jurisdictions. China was the first country to announce its plans, although details of the design and intended use of the digital yuan are still kept secret.
A survey on digital currencies published last year by the Bank for International Settlements shows that 70% of the central banks that took part in the survey are, or will soon be, involved in the CBDC.
At the end of last year, the head of the French central bank, François Villeroy de Galhau, declared that he wanted France to be a leader in digital currencies and take as much as possible benefits from them.