French Central Bank Plans to Launch Digital Currency to Counter Libra

The French Central Bank announced that it will begin testing the digital euro pilot program at the end of the first quarter of 2020, but it will only target the private financial sector and will not include personal retail payments. If it is targeted at retail customers, it will be handled with special vigilance. The French central bank hopes to improve the efficiency of the French financial system and maintain people’s trust in the euro through the launch of the Central Bank Digital Currency (CBDC).

Since Facebook announced the launch of the Libra plan in June this year, many central banks and regulators have paid close attention to the possibility that this kind of cryptocurrency, which refers to global markets, may affect the stability of the country’s financial system. According to the French “Echo” yesterday, the French central bank governor Francois Villeroy de Galhau stated in an interview that he would launch the central bank’s digital currency. In addition to the above reasons, France should also safeguard private digital currencies such as Libra’s sovereignty.

Previously there have been overseas media reports that France, led by Germany, and Germany, Italy, Spain, and the Netherlands will form an alliance against Libra to prevent the launch of this cryptocurrency in Europe, and even put pressure on Facebook and members of the Libra committee to abandon this plan. Therefore, De Gallo’s attitude this time is consistent with French Finance Minister Bruno Le Maire’s previous statement that it requires regulators not to allow Libra to launch in Europe.

De Gallo also emphasized that France should become the first country in the world to issue central bank digital currencies and serve as a model for other regions. He believes that this move can bring benefits to France. As for the French government, it hopes to become a leading country in cryptocurrency and blockchain, and encourages the development of related blockchain projects. For example, the information and public relations center of the French army and gendarmerie uses the Tezos blockchain platform to record the judicial costs incurred during the investigation.