Headquartered in Paris, the Central Bank of France (Banque de France) wishes to experiment with central bank digital currency (CBDC) for all financial institutions. According to report, François Villeroy de Galhau, the governor of the Central Bank of France, wishes to induce the test of this particular digital euro project by the end of 2020’s first quarter.
Restrictions Imposed on the New Project
Along with the news of the introduction of innovation in financial institutions of France, reports have also confirmed the restrictions that have been imposed on it. The new project will be limited to private financial sectors only and will not be stretched to retailers.
Governor Villeroy has also commented that digital currency for the retail sector may also be in the offing and will have to go through strict vigilance and supervision.
The Aim is to Revolutionize
Earlier, the Bank for International Settlements had converged all it’s focus on digital money that is issued by banks. It came to their notice that though the central banks issued digital money, they somewhat failed to reach out to the general public.
Following this, the governor of the Central Bank of France confirmed the launch of the pilot of their CBDC, aiming in the same vein to strengthen the efficacy of digital currencies. It is a requirement in recent times where transactions of digital money have become way swifter than material ones.
A Chance to Undermine Libra?
The Libra stablecoin has set off alarms down the corridors of power in many states. Many of the stances in the digital currency sphere explicitly state the concern relating to the disruption of their monetary systems- be it China’s claim of how their central currency is better than Libra, or the Japanese administration’s assessment of Libra’s impact. Similar concerns can be behind the French decision.