Bank of France Announces Testing of Central Bank-Issued Digital Currency in Q1 Next Year
- The Bank of France announced its intention to launch a digital asset during a conference held by the ACPR.
- The People’s Bank of China has been researching and testing a digital yuan since 2014.
Cryptocurrency is still a risky product for many banks and countries around the world, but the use of central bank-issued digital currency allows a safer exploration for traditional financial institutions.
As France explores this industry, the French Prudential Supervision and Resolution Authority (ACPR) recently held a conference to announce their own CBDC, according to reports from The Block.
François Villeroy de Galhau, the central bank’s governor, explained that they would be testing out this type of asset soon, adding that they “will launch a call for projects before the end of the first quarter of 2020.”
Based on the comments of Villeroy de Galhau, it appears that France is committed to contributing to the innovation of the digital currency world. However, this new digital asset will allow the country to experiment with the technology with their own “serious and methodical” method, contained within their central bank.
At the recent European Union meeting, the Minister of the Economic and Finance Bruno Le Maire just announced that they were developing a “public digital currency,” not long before France discussed their asset. Previously, Le Maire had been adamantly against the Libra crypto asset from Facebook, even saying that France planned to completely block its operation in the country, unless it deals with the issues regarding Libra and monetary sovereignty.
Along with France’s efforts, the People’s Bank of China also stated that it is working on its own digital currency – DC/EP – though their efforts are in the experimental stage. The bank stated that it was “almost ready” for launch, though they’ve been researching it for about five years now.
A subsequent announcement stated that the digital yuan is still being researched and tested, though there’s yet to be any launch date
« Je vois un intérêt à avancer rapidement sur l’émission d’au moins une monnaie digitale de banque centrale de gros afin d’être le 1e émetteur au niveau international et tirer les bénéfices réservés à une monnaie digitale de banque centrale de référence », F. Villeroy de Galhau
— Banque de France (@banquedefrance) December 4, 2019