January 28, 2023

French Central Bank to begin testing state cryptocurrency next year

The head of the Central Bank of France, François Villeroy de Galhau (François Villeroy de Galhau) said that the bank will begin testing state 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.

Villeroy's position is consistent with the previousstatements by the French Minister of Finance Bruno Le Maire, who argued that Libra should not be allowed to enter Europe, otherwise countries could lose their 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.

Recall that last month, the Central Bank of France called for the creation of a blockchain-based settlement system that will allow the euro to move in the Eurozone as quickly as possible and at the lowest cost.