Bank of France Eyes 2023 for CBDC Launch

Bank of France Eyes 2023 for CBDC Launch

Key Takeaways

  • The governor of the Bank of France announced today that the country’s national bank could introduce a CBDC by 2023.
  • The proposed asset is a wholesale CBDC for use by central banks and financial institutions, not the general public.
  • France’s proposed CBDC would incorporate a permissioned DLT and automated market maker (AMM) technology.

A “viable prototype” for a wholesale CBDC could be issued by France’s central bank by 2023. The technology will borrow major features from blockchains and DeFi protocols and will be aimed at financial institutions and central banks.

France Is Creating a CBDC

France’s central bank expects to have a Central Bank Digital Currency (CBDC) in operation by 2023.

François Villeroy de Galhau, Governor of the Bank of France, announced that goal in a speech today at the 2022 Paris Europlace International Financial Forum. 

There, he said that France’s central bank aims to test a “viable prototype” for a wholesale CBDC in 2022 and 2022. The asset could then be used in settlements by 2023, at which time the bank would implement a European pilot regime.

CBDC Is Wholesale, Not Retail

Villeroy de Galhau was careful in his speech to mark the difference between wholesale and retail CBDCs.

A retail CBDC is a digital currency that, much like cash, is issued to the general public for everyday use. Wholesale CBDCs, on the other hand, are only used by financial institutions that hold reserve deposits with a central bank.

According to Villeroy de Galhau, retail CBDCs have been a “focus of both public excitement and private questions” and “doubts… even fears, among commercial banks.”

By contrast, wholesale CBDCs have been less contentious and have allowed institutions to experiment quite rapidly.

Asset Will Have Two Main Purposes

Two “critical use cases” for wholesale CBDCs have been identified by the Bank of France: the tokenization of securities and the enhancement of cross-border and cross-currency settlements. CBDCs are expected to streamline both processes.

Experiments have also led the central bank to birth two “key innovative assets.” The first is a proprietary DLT—a permissioned blockchain. By comparison, public blockchains such as Bitcoin and Ethereum are permissionless.

Thes second innovation is an automated market maker (AMM) that, in Galhau’s own words, is directly “inspired from the DeFi markets.” The AMM is expected to serve as a platform for central banks to settle transactions across multiple CBDCs.

Other central banks have echoed Villeroy de Galhau’s cautiousness around retail CBDCs.

In the U.S., Federal Reserve Vice Chair Brainard said last month that a retail CBDC would need approval from Congress and the president. Even then, its creation would take at least five years.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies. 

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

After the World’s First CBDC, China Now Wants to Build a Blockch…

In a 145-page document, the Beijing municipal administration presented a two-year roadmap for a blockchain-based programmable governance model. More than 100 government services in China are already using blockchain technology….

After the World’s First CBDC, China Now Wants to Build a Blockch...

Bank of England Says CBDC Could Launch by 2030


The Bank of England and HM Treasury (HMT) have announced that they will continue to explore a CBDC or national stablecoin. Consultation Will Begin In 2022 HMT and the Bank…

Bank of England Says CBDC Could Launch by 2030

“Be Right, Not First,” Says Fed Chairman Powell on a Digit…

“We have not made a decision to issue a CBDC,” said Fed Chairman Jerome Powell in his speech during today’s International Monetary Fund (IMF) event devoted to the cross-border payments….

“Be Right, Not First,” Says Fed Chairman Powell on a Digit...

CBD Oil, 9 Must-haves Before Embarking On Cannabinoid
Find out more