In light of the spread of digital currencies and the launch of many countries with their digital currencies already, other countries are seeking to develop their own currencies for central banks to keep pace with the financial technical development in the field of digital payment.

The French central bank announced its plans to launch a pilot program to test the digital euro in settlement proceedings.

Eligible institutions are invited to participate:

According to the central bank statement that bulletin On March 27, the pilot program will be used to assess the potential of decentralized technologies as well as discover strong use cases for CBDCs.

The initiative has three main objectives, according to the French Central Bank, which are:

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Or not: To clarify if and how CBDC can be used to settle interbank transactions.

secondly: Determine the benefits that a digital euro can provide.

Third: To conduct a detailed analysis of the potential impacts of the introduction of the Technical Diversity Convention on financial stability, monetary policy, and the regulatory environment.

To conduct these tests, the Central Bank invited all eligible and interested parties to participate.

According to the declaration, applicants must be within the European Union or in a state party to the EU Area Agreement.

Applicants must also submit proposals for experiments that will focus on at least one of the pre-defined use cases noted above.

According to the central bank, the digital euro will work on payment via a digital code, and it represents the money of the central bank, and it can be in exchange for the delivery of a listed or unlisted financial instrument, or an exchange of digital currency to another central bank or other digital assets determined by the French monetary and financial law.

At the same time, the central bank stated explicitly that these experiments do not imply the creation of digital money in any way, and added with clarification:

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The representation of central bank funds is limited to the day the payment is made, and the end of payment is recorded in accounts with central bank funds, as the token alone has no legal force.

The French Central Bank has set until May 15 for the entities that wish to participate in the experiments, and after the initial interviews that will take place in June, the final test will take place on July 10.

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