September 28, 2022

French Central Bank to launch digital currency testing in early 2020

French Central Bank to launch digital currency testing in early 2020

France plans to test central bank digital currency for financial institutions in next year, writes local edition Les Echoswith reference to the statement of the head of the regulator Francois Villeroi de Halo. According to him, the pilot project for the digital euro should start before the end of the first quarter.

The Bank of France confirmed this information on Twitter, noting that the announcement was made at a conference organized by the country's leading financial regulators.

According to the publication, the project will covera limited number of institutions and will not include retail payments for citizens. The head of the Central Bank noted that consumer digital currency would require "special control", and warned that when conducting experiments with new technology, a "serious and methodical approach" should be used.

Les Echos reports that the initiative aims toincreasing the efficiency of the French financial system and building confidence in the national currency. In addition, it will strengthen its sovereignty against the backdrop of the emergence of private initiatives of a similar plan, such as Facebook’s stablecoin Libra.

Earlier it became known that France is one of the leaders of the coalition, whose members wish to prevent the spread of Libra in Europe.