The French Central Bank launched an experimental program to test the integration of the digital euro into mediation procedures.

According to the statement made by the bank, the purpose of the program is to explore the potentials offered by technology. The bank also wants to identify concrete cases that integrate the Central Bank Digital Currincies (CBDC) into innovative procedures for the solution of tokenized financial assets.

According to the announcement, the program has a threefold goal. The first is to show how to make a traditional interbank agreement using CBDC. The second goal is to determine the benefits of CBDC. Last but not least, it is to analyze the effect of CBDC on financial stability and monetary policy. 

For this reason, the bank calls on the relevant institutions to apply. According to the announcement, the applicant must be established in the European Union (EU) or in a state party to European Economic Area agreement.

Each application must contain an experiment recommendation covering at least one of the following use cases:

• - Delivery of a listed or unlisted financial instrument
• - Digital currency of another central bank
• - Digital assets defined by the French Monetary and Financial Law

The central bank does not make money, it just tests.

However, the central bank claims that it will not generate money in the context of these experiments. He also added that the token, which digitally reflects the amount in euros, will be destroyed at the end of the day of the payment.

Candidates are required to submit their application forms by 16.00 on May 15, 2020 at the latest. Eligible applicants will be invited for an interview in June 2020 and the selection will be held on July 10. The central bank states that these experiments were not carried out to replace banknotes and coins.