Currently, digital asset firms in France can operate without a full license because the law allows them to carry out business with a temporary license pending the acquisition of the main one.
Apart from considering the benefits of wholesale CBDCs, Villeroy de Galhau notes that the central bank is also looking to improve CBDCs' liquidity management in DeFi using automated market makers.
François Villeroy de Galhau, governor of the Banque de France, said the second phase would see four or five experiments carried out on the digital euro platform.
The French and Swiss central banks tested the use of a wholesale CBDC in cross-border funds transfers, with Credit Suisse, Accenture, and others participating.
The deputy governor of the Bank of France addressed the need for DeFi and digital assets regulations and expressed his concerns about CBDC.
The Bank of France began experimenting with CBDC in 2020 and said it could transform sectors such as cross-border transfers, but there are concerns.
Banque du France is seeking to determine how a central bank digital currency can improve the fluidity and efficiency of payment and settlement systems.
Bank of France Governor Francois Villeroy de Galhau has made a 180-degree turn on his stance on cryptocurrencies and called for platforms that easily switch between crypto-assets and the real economy.
In a report by the Bank of France, officials are hoping to implement some drastic legislation that will seriously hinder the advancement of the digital currency in the country.
