France further its CBDC experiment for a digital euro

• Many national banks across the world are looking into the idea of digital currencies. 
• France is just one of the countries that are starting to conduct the tests on their own which could pave the way for a digital euro.

Many national banks across the world are looking into the idea of digital currencies. France is just one of the countries that are starting to conduct the tests on their own which could pave the way for a digital euro. However, questions are being asked as to how this will affect the ecosystem of the crypto space as well as what the experiments from the country will involve. 

Going off a document published at the end of last month, the Bank of France is currently looking for a central bank digital currency that will be able to head into bank settlements. In order to find such a currency, the institution has called upon the finest inviting applicants to spoil the potential advantages of a CBDC.

By the 10th of July this year, the bank will elect 10 applications on the CBDCs and will be basing the decision on innovative utility. Despite this, the bank isn’t going to make its decision based on blockchain alone. Instead, they will leave the door open for other technological solutions that could benefit the country.

The experiment will come in three waves. The first will help plan out how essential bank digital currency could effectively complete interbank settlements. Secondly, they will look into uncovering the secret advantages of a digital currency of its size. And last but not least, the potential impact it could have on financial stability will be looked into.

It has been made exclusively clear that the test is purely for experimental reasons and will not be continuing in the long run. On top of this, the project will not be used for commercial reasons and side usage within the interbank transfers space instead.

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!