France to Improve Financial System with Blockchain

Suzat

November 26, 2019 10:28 pm

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French central bank’s first deputy governor has called for distributed ledger technology (DLT)-based settlements and payment systems in Europe.

While speaking at the AFME Annual Capital Markets Technology and Innovation Conference on Nov. 21, Denis Beau, the first deputy governor of Banque de France, highlighted the issue of policy frameworks that could potentially help to bring innovation and growth into Europe’s capital markets.

According to the official, the implementation of blockchain technology could have an impact on the financial industry.

Beau said:

“The tokenisation of financial assets combined with the recourse to blockchain-based solutions and more broadly Distributed Ledger Technologies to store and transfer those assets could help answering the market’s demands.”

Beau also specified that DLT could facilitate gross and delivery-versus-payment processes, cross-currency settlement, resilience, and recovery from operational incidents. 

The governor added that the Eurosystem open itself to experimenting with the technologies in a bid to improve the conditions under which the central bank makes money available as a settlement asset.

Beau added:

“We, at the Banque de France, are therefore quite open for experiments in that direction, together with the ECB and other central banks of the Eurosystem, in particular with regard to a wholesale Central Bank Digital Currency.”

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