France central officer indicates digital currency cannot be individual

Published:

On: Jan 2020

The governor of Bank of France, Francois Villeroy de Galhau said that the digital currency could be practical as cash transactions decrease in some nations but the central bank should be in charge of releasing it, not private firms. Stimulated by the gain of cryptocurrencies and leading social networking giant, Facebook’s plans to establish its Libra currency, the central banks across the globe are looking into the availability of releasing digital money to resolve the failure of state control over money.

Villeroy stated that the programs were not feedback to Facebook’s proposal, responding rather than fast-emerging technologies and some banks require digital currency. He further added that individual citizens could also commence wanting an alternative to money.

In some northern European nations, mainly Sweden and the Netherlands, the utilization of banknotes is sliding extensively and they are surprising whether the bank needs to offer citizens the authority to digital cash that is not physical banknote but which has a similar quality, mainly the security a central bank.

While asked about whether such kind of digital money could be released by private organizations, Villeroy told that the digitalize currency cannot be private, cash is a public good of supremacy. He said that central banks were planning experiments along with digital cash and that the problem would be studied by the Eurosystem eurozone central banks.