The Governor of Bank of France, Francois Villeroy de Galhau, has given a statement in which he has affirmed that the sole power of issuing electronic currency or cryptocurrencies should be vested in the hands of the central banks and not private companies. The report was published by leading news portal Reuters.
Cryptocurrencies have been enjoying a strategic surge in the financial marketspace in recent times. The growing popularity and the unprecedented excellence offered by these virtual currencies have taken the world in a blow. Last year, Facebook announced its plan to launch its highly anticipated stablecoin project, Libra. The news created a lot of chaos in the crypto arena as governments from across the world feared the loss of sovereignty after the issuance of privately controlled currencies. With a view to maintaining their control over the financial system, the apex banking bodies around the globe geared up to launch e-Currency solutions.
According to the statement given by Villeroy, the latest technological developments and the urge to become digitalized has triggered the execution of the plans by the government.
In some northern European countries, notably Sweden and the Netherlands, the use of banknotes is falling extremely quickly and they are wondering whether we need to give citizens the right to digital money that is no longer a physical bank note but which has the same quality, notably the security of a central bank.
He affirmed that digital currencies should be in full control of the government only as “money is a public good of sovereignty.” Villeroy also revealed that some of the Eurosystem eurozone central banks are teaming up to explore the complexities involved in the issuance of e-currencies. The banks involved in the process will be the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank, the Swiss National Bank and the Bank for International Settlements (BIS).
The group will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies. It will closely coordinate with the relevant institutions and forums – in particular, the Financial Stability Board and the Committee on Payments and Market Infrastructures (CPMI),
read the report.