The Central Bank of France is pushing for a blockchain-powered settlement system in the European region for quick and cost-effective euro transfers. Dennis Beau, the Deputy Governor, spoke in support of the Distributed Ledger Technology during a speech on Thursday, November 21. He said the technology is the answer to many of the presenting financial market problems.
One Solution France is suggesting is a Central Bank Digital Currency and Beau seconds this suggestion saying,
“The TOKENIZATION of financial assets combined with the recourse to blockchain-based solutions and more broadly Distributed Ledger Technologies to store and transfer those assets could help answering market’s demands.”
The Distributed Ledger Technology will help in solving delay problems related to cross-border payments. According to Beau, members of the European Union and other regions have always had to suffer long periods of waiting for payments to get transferred between international banks. Such long processes attract high fees and are generally insecure services.
Tokenization of the banking space would bring a twist and an end to the pressing problems. A combination of tokens and the DLT will aid in securing easy money transfers and addressing market demands.
Banque de France has been advocating for the adoption of the Distributed Ledger Technology for quite a long time. It has been working on a project on a digital currency execution program since October. Beau credits the bank for being the pioneer central bank to have a blockchain-powered registry system globally. Beau said,
“The Eurozone being the provider of settlement services and wholesale clearing in euros, should try the new technology to improve its services of using central bank funds for settlements,”
“The Banque de France, European Central Bank, and other central banks in the European Union are already experimenting with the new tech, especially on Central Bank Digital Currency.”
The European Central Bank has its fintech-powered Innovation Hub that it launched early this month. The platform advocates for international central banks to work together in embracing the new technologies in the financial space.
There have been rumors that the European Central Bank is issuing its own stablecoins, but the presidency of the ECB has nullified the rumor claiming that it was only interested in regulating the digital coins and not owning them.