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France about to test its Central Bank digital currency in 2020

Financial institutions in France will be able to make use of the central bank digital currency in 2020, says the central bank of France. According to reports by French financial publication, the governor of the central bank of France: François Villeroy de Galhau has made an official statement to do the same and test the currency after the first quarter of the year 2020.

Retail customers not involved in the process

Only the private financial sector will be a part of this Digital Euro pilot scheme, and retail payments won't be a part of the same. 'Anytime in the future, retail payment would be subject to special vigilance' said by the governor himself. The main motive of this scheme is to strengthen the financial system's efficiency in France while entrusting the trust in the currency at the same time.

Libra's impact

Also, after Facebook's stablecoin Libra, France realized that it was necessary to assert the sovereignty of the country over private digital currencies initiated. The governor and the finance minister of France made it clear that they won't allow the launch of Facebook's Libra on Europeans to protect their monetary sovereignty concerns for the country. Also, France has been an active part and member of the anti-libra effort with the other three countries, Germany, Italy, Spain, and the Netherlands.

The first country to launch CBDC

The governor of the central bank of France emphasized for France to be the first-ever country to issue CBDC; as he said in a tweet. He wants to set an example for other jurisdictions to follow!

Emergence of France as a major adopter of cryptocurrencies

Once the government of France approved a few finance-related projects, France seems to adopt the blockchain technology and cryptocurrencies actively.

In the year 2019, the first deputy governor of the Bank Of France approved for the blockchain technology as a mode to settle payments systems in Europe. Not just blockchain technology, but France has also adopted the biggest cryptocurrency, Bitcoin majorly. For example, in mid-October this year, French crypto startup Keplerk relaunched its service and targeted about 5200 tobacco shops in France to accept digital payments.

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