A crypto-euro soon available? – The Banque de France has brilliantly carried out its first test of a digital central bank currency (MNBC). On 17 December last, it had proposed a subscription to a money market fund thanks to a digital currency issued on a private blockchain.
The Banque de France wants its crypto-euro
The Banque de France announced on 19 January that the pilot project had been a great success. The test enabled investors to buy and then resell more than €2 million worth of units in a money market fund.
The blockchain infrastructure for the test was provided by SETL, a UK-based blockchain service provider. Although this is only a test, we can only deplore the absence of a French player to support the project.
„From a technological point of view, the experiment required the development and deployment of smart contracts so that the Banque de France could issue and control the circulation of MNBC tokens and that their transfer would take place simultaneously with the delivery of fund unit tokens to the investors‘ portfolio. »
Banque de France press release
The second pitfall of this project is the lack of European coordination on the issue. Several Member States of the European Union have undertaken experiments on CBDM. These tests have been technically successful, but regulatory questions remain. We can only hope that these efforts will be pooled in the near future in order to secure the European position on the issue.
MNBCs in the spotlight
The current bull run and China’s steady advance on its digital yuan have put MNBC back in the spotlight at the beginning of 2021. Indeed, Fed Director Jerome Powel said the creation of an MNBC was a top priority to stem the proliferation of „bad private sector currencies“.
Since last week, China has been deploying its first vending machines for its crypto yuan in Shenzhen province.
The Middle Kingdom is clearly getting ahead of all its competitors in the race for digital central bank currencies.