Digital currencies are increasingly seen as a reliable alternative out of time. Either because of tensions between the US. UU. And Iran or the economic slowdown in developing countries, people are now curious about the cryptocurrency and its use cases.
However, the governor of the Bank of France, Francois Villeroy de Galhau, believes otherwise. In a statement issued on January 25, the Governor said that although digital currencies could be useful, central banks should be in charge of issuing it and not private companies, according to a report.
Villeroy also claimed that the statement is not a reaction to Facebook's Libra plan, but rather a response to the rapid growth of blockchain technology and some banks needing digital currencies.
In a conversation with France Inter Radio, Villeroy stated:
“In some countries in northern Europe, especially in Sweden and the Netherlands, the use of banknotes is falling extremely fast and they wonder if we should grant citizens the right to digital money that is no longer a physical banknote but which has the same quality, especially the security of a central bank «.
When asked if private companies could issue digital money, Villeroy declared that the currency cannot be private, adding that money is a public good of sovereignty. He added that central banks are among experiments on digital money and that the topic would be studied by the central banks of the Eurozone.
In 2019, the French government had asked for cryptocurrency rules at the European Union (EU) level, along with the creation of a "public digital currency". The Minister of Economy and Finance of France, Bruno Le Maire. According to reports, he had stated that a common cryptocurrency framework was needed for the 28 EU countries.
However, France is not alone in contemplating such actions. According to a recent statement published by the Bank of England, the central banks of Canada, the United Kingdom, Japan, the European Union, Sweden and Switzerland have jointly created a group with the Bank for International Settlements (BIS) to investigate and analyze the potential of the bank's digital currencies central (CBDC s).
Besides, the President of the European Central Bank (ECB), Christine Lagarde, also announced a few days ago that the ECB has assembled a working group to analyze the feasibility and the possible outcome of the creation of a CBDC.
Even if The European Central Bank is open to the idea of a digital equivalent in euros, it has actually been skeptical about its citizens owning too much. The Swiss government had previously stated that a Swiss digital franc would do more harm than good, and concluded that the introduction of a digital currency would really put financial stability at risk.