Banque de France Calls for Further Examination of Wholesale CBDCs

Banque de France Calls for Further Examination of Wholesale CBDCs
France’s central bank has concluded that further examination of wholesale central bank digital currencies (CBDCs) is needed following its initial experiments.The Banque de France’s experiment commenced in March 2020, with results published Monday.“We have demonstrated that a wholesale CBDC would be of benefit for cross-border and cross-currency payments as it would improve the efficiency of processing chains,” said Nathalie Aufauvre, head of the bank’s experimentation program.However, further examination is required of important questions pertaining to the role of financial intermediaries and the transmission of monetary policy, according to the Banque de France.“It is essential, therefore, that central banks retain full…