The Bank of France says Ethereum and XRP could be used to power central bank digital currencies in the future.
According to a document published Mar. 30, France’s central bank is launching an experimental program to investigate the potential use of a digital currency for interbank settlements. The bank has opened applications for interested parties to participate in the pilot program, with an emphasis on creating innovative technologies rather than replacing fiat.
The document reads,
The challenge of these experiments is not to replace these two existing forms of central money, but to identify how innovative technologies could improve the efficiency and fluidity of payment systems and financial infrastructures, allowing a better financial sector to ensure the smooth financing of the economy.
The Bank of France intends to analyze the use of existing cryptocurrencies to power central bank digital currencies. According to an internal report, the bank has touted the use of ethereum and xrp, in particular.
The report reads,
Since the attributes of a unit of the wholesale CBDC (file representing the currency unit, keys enabling use) may be integrated in a cryptoasset circulating on another blockchain, which is possible on Ethereum and Ripple, for example, it would then become possible to use the unit on this blockchain.
The experimental project was first announced by Bank of France governor François Villeroy de Galhau in December 2019 as part of a plan to make the country the first to issue a digital currency.
Featured Image Credit: Photo via Pixabay.com
