Denis Beau, the first deputy governor at Banque de France, has hailed the central bank digital currency (CBDC) as the catalyst for enhancing cross-border payments. The representatives of Banque de France, the nation’s central bank, have embraced a global perspective regarding the CBDC, positioning it as the cornerstone of a novel international monetary system.
On October 3rd, Denis Beau emphasized that CBDC serves as the impetus for elevating cross-border transactions by facilitating the establishment of a fresh international monetary framework. He underscores the imperative of addressing cross-border concerns related to CBDCs proactively, rather than as an afterthought.
Beau envisions multiple avenues for CBDC development. Firstly, the establishment of shared standards and interoperability between wholesale CBDCs and conventional systems. Secondly, the proposition put forth by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) involves the creation of regional or global CBDC platforms. These platforms would enable the direct exchange of standardized wholesale CBDCs and facilitate payment-versus-payment and delivery-versus-payment transactions.
Beau drew attention to Project Mariana as an illustrative case, which explored the possibilities of an automated market maker (AMM). The project, a collaboration between Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank, culminated successfully in late September.
The official’s discourse encompassed not only CBDCs but also the tokenization of finance. He conveyed his belief that the public sector should play a more substantial role in supporting the private sector to unlock the full potential of blockchain technology while mitigating associated risks. In his view, tokenized “central bank money availability” and tokenized assets complement each other rather than competing.