In a groundbreaking move, France, the world’s sixth-largest economy, has reportedly taken a pioneering step towards embracing XRP as a crucial element of its digital euro strategy.
The Banque de France, the central bank of the country, has been making significant strides in this direction and has now marked a historic milestone in the adoption of cryptocurrency for national financial infrastructure. Edo Farina (edward_farina), a prominent member of the XRP community, shared the exciting news on X.
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The journey towards this monumental decision commenced in 2021 when Banque de France conducted a successful test of Central Bank Digital Currency (CBDC) within a controlled environment. This test was conducted in collaboration with TARGET2-Securities (T2S), the settlement platform operated by the European Central Bank. The outcome of this test paved the way for further exploration of XRP technology.
FRANCE 🇫🇷 has chosen $XRP
Among the most powerful countries in the world, France 🇫🇷 (6th GDP) is the first to admit it wants to commit to $XRP for its digital euro.
In 2021, Banque de France successfully used CBDC in a test environment, in connection with TARGET2-Securities… pic.twitter.com/ZXj1BFNg3k
— EDO FARINA 🅧 XRP (@edward_farina) October 17, 2023
The Bank of France and XRP
Farina highlighted that the Bank of France has long been a proponent of Ripple’s technology and XRP, as evidenced in a paper titled “Implementation of real-time settlement for banks using decentralized ledger technology policy and legal implementations.”
In the paper, the Bank of France highlighted the role of XRP as a “virtual currency” and emphasized how it can be used to “bridge any currency pair.” This acknowledgment underlines the potential of XRP to serve as an intermediary asset for facilitating cross-border transactions, simplifying currency exchange, and providing a seamless cross-border payment experience.
The document details the practical use case of XRP and decentralized ledger technology. It outlines a scenario where banks, acting as liquidity providers, leverage XRP to facilitate currency exchange.
In the example, XRP is used as an intermediary asset to bridge different currency pairs. This approach aims to create a payment-versus-payment system that enables real-time settlement with transparency and atomicity.
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This innovative system streamlines foreign exchange transactions and enhances the efficiency of payment settlements between banks. Instead of relying on traditional correspondent banking networks, they coordinate account entries using a distributed ledger, ensuring seamless and transparent financial interactions.
Recently, Ripple was in the news with rumors of a partnership with the Australian Freight and Trade Alliance (FTA). Now, France’s decision to embrace XRP as part of its digital euro strategy marks a bold step toward modernizing its financial infrastructure and providing a model for other nations to follow.
France’s position as a major global economic player makes its endorsement of XRP even more significant, potentially setting the stage for broader adoption soon. This big news comes after a major announcement of Ripple being shortlisted for a CBDC project by the National Bank of Georgia.
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