France to test digital currency in Q1 2020

France intends on testing its central bank digital currency (CBDC) in the first quarter of 2020. According to a report by Les Echos, the Banque de France aims at becoming the first in Europe to launch a CBDC. The bank will seek to use the digital currency to improve the efficiency of the country’s financial system.

The governor of the Banque de France François Villeroy de Galhau revealed that the currency will be reserved for financial institutions. Speaking at an event organized by the French Prudential Supervision and Resolution Authority, the governor stated, “We intend to start experimenting quickly and launch a call for projects (for private sector players) by the end of the first quarter of 2020.”

The French government is acting in haste as it seeks to counter the efforts of private institutions such as Facebook’s Libra and other governments as well, such as China. The governor admitted to this, stating that the CBDC would give the French government the leverage it needs “for asserting our sovereignty against private initiatives of the Libra type.”

France to test digital currency in Q1 2020

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