The French central bank believes distributed ledger technology (DLT) will enhance financial stability due to its transparent nature.

Banque de France said in a report on July 21 that DLT has the “potential to enhance the efficiency and effectiveness of the monetary and financial system.” The watchdog also believes it can make central bank digital currencies (CBDCs) more efficient and secure.

The potential of the technology has given rise to a number of projects in the private and public sectors that are attempting to revolutionize the financial system.

The private sector is developing stablecoins, cryptocurrencies, and tokenizing real-world assets in an attempt to bring the aforementioned innovations to the financial system.

For the public sector, the regulator said that central banks …