- The Central Bank of France is getting ready to start testing its own cryptocurrency next year.
- The announcement was revealed by the bank's governor earlier this week.
- The Bank of France now has blueprints so it can create its own central bank digital currency.
The Central Bank of France, is getting ready to start testing its own cryptocurrency next year, but is this good or bad news for the industry?
The announcement was revealed by François Villeroy de Galhau, the bank's governor earlier this week.
François stated in his speech that the bigger players in the space of payments are where the "centre of gravity" is at, especially for such an emerging industry. Because these big companies are based in other areas, the introduction of players outside of the banking sector could threaten the overall power of Europe.
The bank's governor further went onto cite that the leading cryptocurrency, which "perhaps [has] no real value," was the original asset of its kind before the advent of stablecoins. Nevertheless, despite making cross-border payments significantly more efficient and easy, the second generation of these kinds of assets still have "financial and political risks” posed above them.
"Of course, as central bankers and supervisors, there is no question of us standing by and letting this change happen unchecked. We have to remain fully committed to our dual objective - safeguarding confidence/supporting innovation - which is written into the very DNA of our institution."
The Bank of France now has blueprints so it can create its own central bank digital currency according to François. This is because it’s the answer to payment solutions provided by private like Facebook.
"Additional skills will be recruited to strengthen its expertise, and, with the help of our Lab, the DIIP will work with industry innovators from the private sector: we want to start running experiments rapidly and will launch a call for projects before the end of the first quarter of 2020."
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!