The Bank of France is calling for applicants to help it experiment with the implementation of a digital euro. The project aims to look at the possible consequences of the cryptocurrency on market infrastructures, monetary policy, macroeconomics, and legal frameworks. For this reason, the central bank is looking for innovative solutions in 3 use case areas:
- Payments against financial instruments
- Payments against other central banks’ digital currencies
- Payments against digital assets
Applications are open to groups and individuals based in the European Union and European Economic Area. Applicants have up until the 15th of May to apply, with a decision on the ten selected projects expected on the 10th of July.
This announcement comes after a December 4th speech in which François Villeroy de Galhau, the Governor of the Banque de France, stated the following about a Central Bank Digital Currency (CDBC) “Other countries have paved the way. It is now up to us to play our part, both ambitiously and methodically.”
The announcement of the French central bank makes them the first in the Eurozone to begin work on a digital euro. But not the first in Europe, with Sweden announcing earlier this year that it was launching experiments on a digital krone.
In addition, the bank noted that they would not use this experiment to create money and that all tokens created will not only pass through the central bank’s own books, but will be destroyed at the end of each payment day.
This move places France at the front of the pack in the Eurozone with regard to a digital euro, a possible alternative for many to buying Bitcoin in France.