Denis Beau, the inaugural deputy governor of Banque de France, has heralded Central Bank Digital Currencies (CBDCs) as the cornerstone of a nascent global monetary paradigm. In his view, CBDCs must transcend local financial settlements, evolving into the linchpin of cross-border transactions, rather than mere fiat replicas.

Beau articulates this vision, emphasizing that CBDCs serve as the fulcrum for a reimagined international monetary framework, remarking, “(CBDCs) are the catalyst for improving cross-border payments by enabling the build-up of a new international monetary system.”

In line with his counterparts, Beau advocates for the adoption of CBDCs while stressing the imperative of meticulous utility planning, especially within the realm of global payments.

Simultaneously, he champions the untapped potential of blockchain technology, even in the face of cryptocurrency risks. To harness this potential, Beau calls for a symbiotic relationship between the public and private sectors, envisioning a more efficient deployment of tokenized assets.

Banque de France’s Pursuit of the Ideal CBDC Model
Amidst the global CBDC fervor, the bank remains resolute in its quest for seamless global settlements and the harmonization of disparate platforms.

The deputy governor outlines two avenues for effective CBDC creation: fostering synergy between wholesale and conventional models, and aligning CBDCs with established frameworks championed by the Bank for International Settlements (BIS) and the International Monetary Fund (IMF).

Banque de France envisions an all-encompassing CBDC ecosystem, with an integrated automated market maker (AMM) deployed across participating nations. This AMM would standardize payments, bridging the gap between wholesale digital currencies and personal transactions.

Unwavering Regulatory Vigilance in France
French authorities have maintained a vigilant stance on digital asset regulation, responding to industry setbacks and malicious activities in the past year.

Despite the forthcoming Markets in Crypto Assets (MiCA) regulation set to take effect in Europe, Banque de France’s governor underscores the need for broader international cooperation in regulatory efforts.

Project Mariana: An Experimental Leap
Beau sheds light on Project Mariana, a collaborative initiative involving Banque de France, the Swiss National Bank, and the Monetary Authority of Singapore.

This endeavor experimented with token standards on a chosen blockchain, facilitating cross-network transactions through a specific decentralized exchange.

While the experiment was deemed a success, it is essential to note that this does not signify an endorsement of any particular blockchain or CBDC. As Beau clarifies, “Project Mariana is purely experimental and does not indicate that any of the partner central banks intend to issue CBDC or endorse DeFi or a particular technological solution.”