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.
Working alongside some of the country’s biggest private banks, the Banque de France ran over 500 transactions during the CBDC pilot.
The trial involved using the CBDC to simulate the settlement of listed securities in a test environment. Banque de France partnered with Swiss bank SEBA as well as two Luxembourg institutions.
The memorandum is aimed at removing barriers to firms looking to operate interchangeably between the two markets.
The central bank ran a transaction involving settling €40 million of bonds issued as security tokens in exchange for digital euros.
The French central bank has put out a call for applications to experiment with a central bank digital currency. However, it may not end up issuing a CBDC.
