Denis Beau, the First Deputy Governor of Banque de France, has spotlighted the game-changing capabilities of central bank digital currencies (CBDCs) in revolutionizing the global financial landscape. On October 3, Beau emphasized the pivotal role of CBDCs in streamlining and enhancing international payment systems.
Rather than treating cross-border payment challenges as secondary concerns, Beau stressed the need to prioritize them from the outset. He delineated two primary trajectories for the evolution of CBDCs. The initial route focuses on establishing universal standards, ensuring wholesale CBDCs can effortlessly integrate with the current financial infrastructures.
In tandem, Beau highlighted a vision shared by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). Their perspective leans towards the inception of regional or even global CBDC platforms. Such platforms would allow standardized wholesale CBDCs to be exchanged directly, simplifying complex transactions like payment versus payment and delivery versus payment.
Beau also drew attention to the achievements of Project Mariana, a tripartite venture involving the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank. This groundbreaking initiative explored the feasibility and advantages of an automated market maker (AMM). Having wrapped up in September, Project Mariana is a testament to the strides in CBDC exploration.
Yet, Beau’s discourse wasn’t confined to just CBDCs. He ventured into the expansive realm of financial tokenization. Beau posited that the public sector plays an indispensable role in amplifying the endeavors of the private sector. He believes This symbiotic relationship can unlock blockchain technology’s vast potentialities, all while ensuring that risks are kept at bay. In Beau’s vision, the future sees tokenized central bank currencies and other tokenized assets not as competitors but collaborators, jointly shaping the future of global finance.