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Banque de France Deputy Governor Asserts CBDC's Pivotal Role in Shaping the Future Monetary System

Algoine News
Summary:
Denis Beau, First Deputy Governor at Banque de France, has affirmed the Central Bank Digital Currency's (CBDC) potential in shaping the new international monetary system. In his speech published on October 3, Beau stressed the importance of wholesale CBDCs' interoperability with existing systems and the creation of global CBDC platforms. He also referenced the successful Project Mariana and discussed the need for governmental support in leveraging blockchain while reducing its risks, viewing tokenized bank money and tokenized assets as complementary.
Banque de France officials have voiced their support for the global focus on the topic of Central Bank Digital Currency (CBDC), asserting its key role in shaping the future of the international monetary system. In his speech, released on October 3, Denis Beau, First Deputy Governor at Banque de France, characterized the CBDC as a pivotal factor that could bring about improvements in cross-border transactions and thereby, contribute to forming a novel international monetary system. Mr. Beau stressed the importance of addressing potential cross-border complications concerning CBDCs from the beginning instead of treating them as later considerations. He outlined two possible trajectories for the progression of CBDC. One of them entails the formulation of universal standards that would promote interoperability between wholesale CBDCs and established systems. The other approach, suggested by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), involves the creation of regional or worldwide CBDC frameworks. Under this plan, the standardizations of wholesale CBDCs could facilitate their direct exchange on the proposed platforms, and enable payment transactions against deliveries and payments. Referencing Project Mariana, a successful collaboration involving the Banque de France, the Monetary Authority of Singapore and the Swiss National Bank, Beau spoke of its exploration into an automated market maker (AMM). Beau also discussed financial tokenization, emphasizing the need for government support to the private sector in maximizing the benefits of blockchain while mitigating its risks. Beau thinks of the tokenization of "central bank money availability" and tokenized assets as allies, not rivals.

Published At

10/4/2023 9:00:17 AM

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