February 20, 2024

French Central Bank to begin testing state cryptocurrency next year

The head of the French Central Bank, François Villeroy de Galhau, said that the bank will begin testingstate cryptocurrency for financial institutions in the first quarter of next year.

Central Bank confirmed this information on a social networkTwitter, noting that when testing a new technology, it is necessary to use a "serious and methodical approach." This issue was discussed at a conference organized by the Office of Prudential Control and Crisis Resolution, as well as the Office of Financial Markets.

The bank also stated that the project aims toparticipants in the private financial sector and is not intended for retail payments. According to Villeroi, such an initiative will strengthen the financial system of France and provide confidence in the currency, reducing the influence of stablecoin Libra.

Villeroi's position is consistent with previous onesstatements by French Finance Minister Bruno Le Maire, who argued that Libra should not be allowed to appear in Europe, otherwise countries could lose sovereignty in monetary policy.

“France should be the first country towill release its own digital currency and will become a model for other jurisdictions, ”said Villeroi, expressing interest in the early launch of stablecoin.

Let us recall that last month the French Central Bank called for the creation of a blockchain-based settlement system that would allow the euro to move within the Eurozone as quickly as possible and at the lowest cost.