A senior official of Banque de France put the spotlight on digital currencies and spoke on CBDC development for its many benefits for global payments.
Banque de France recently outlined its detailed strategy regarding digital currencies. A senior official from the central bank also underlined the importance of CBDC development. Denis Beau, the first Deputy Governor of the bank, also touched upon other issues while speaking on CBDCs.
Beau termed CBDCs to be the positive trigger for cross-border payments. He implied such digital currencies could give rise to a new-age international monetary system. He also mentioned how one should consider the cross-border aspect during the development of CBDCs.
“One of these paths is the development of common standards and interoperability between wholesale CBDCs and with legacy systems. This coordinated effort on interoperability is essential, to limit the risk that the design of wholesale CBDCs gives its priority to domestic issues over international interoperability,” he said.
He was referring to the different paths for CBDC development. He focused on the importance of these standards before CBDCs were released. Further, he touched upon another path for the development of CBDCs.
That strategy involved the decision promoted by major international institutions like the IMF and BIS. It mainly involved the creation of region-wise CBDC platforms. He stated that wholesale CBDCs could be exchanged on such platforms for various transactions.
Beau also mentioned the example of Project Mariana. The French central bank worked with others in the project to explore various FX transactions through CBDCs.