France central bank has launched an experimental program to test the integration of digital Euro in settlement procedures.

According to a statement released by the bank, the aim of the program is to explore the potentialities offered by the technology. The bank also wants to identify concrete cases integrating Central Bank Digital Currencies (CBDC) in innovative procedures for the settlement of tokenized financial assets.

Per the announcement, the program has a three-fold objective. The first one is to show how traditional inter-bank settlement can be carried out using CBDC. The second objective is to identify the benefits of CBDC. The last but not least objective is to analyze the effect of CBDC on financial stability and monetary policy.

The bank is therefore calling on interested entities to apply. Per the announcement, an applicant must be established in the European Union (EU) or in a state party to the European Economic Area agreement.

Each application must include a proposal for an experiment which covers at least one of the following use cases: Payment by means of a token, representing central bank money against: 1) Delivery of a listed or unlisted financial instrument; 2) A digital currency of another central bank; and 3) Digital assets, as defined by the French Monetary and Financial Code.

However, the central bank claims it will not engage in money creation in the context of these experiments. It added that, the token reflecting the amount in Euros, in digital form, will be destroyed at the end of the accounting day on which the payment was made.

Applicants are to submit their application forms latest by May 15, 2020 at 3pm (CET). Eligible applicants will undergo interview in June, 2020 and selection will be done on July 10. However, the central bank noted that the challenge of these experiments is not to replace banknotes and coins.