October 21, 2020

French Central Bank announces successful testing of digital euro

The Central Bank of France announced the successful testing of the digital euro based on the blockchain. State cryptocurrency is focused on institutional clients.

According to the Central Bank of France (Banque de France) onOn its website, on May 14, the bank began a test sale of securities for digital euros, after which it continued testing with several financial institutions, including Societe Generale. The pilot project is focused on institutional clients and banks, and not on individual users. The regulator explained this by the fact that when testing the digital euro, the potential of blockchain technology in interbank regulation and the reduction of financial risks is simultaneously studied.

Bank of France reports that in the coming weekswill conduct additional tests with partners related to the transfer of state cryptocurrency within the framework of the European Union. The regulator believes that the digital euro will solve many problems of the European market, namely, it will speed up transfers between banks and their international partners, strengthen the financial system of France and ensure confidence in the currency, while reducing the possible impact of Facebook's Libra stablecoin.

In January, Bank of France Chairman FrancoisVilleroy de Galhau (François Villeroy de Galhau) said that digital currencies should not be issued by private companies - these functions should be taken over by central banks. However, Fabio Panetta, member of the Executive Board of the European Central Bank (ECB), believes that even in times of crisis, you don’t need to rely entirely on digital euros, but pay attention to peer-to-peer payments and Target Instant Payment Settlement (TIPS), developed by the ECB.