Cryptocurrencies should not be handed over to private owners

The issue of digital currencies should be undertaken by central banks, and not private companies, the head of the Central Bank of France, François Villeroy de Galhau, said on January 25.

When asked if such digital money could be issued by private companies, de Galhau said that “currency cannot be private, money is a public good.”

Seeing the rapid growth of the cryptocurrency market and having studied Facebook’s plans to issue their Libra currency, the central banks of countries around the world are currently carefully studying the possibility of issuing cryptocurrencies in order to prevent the loss of state control over the money issue.

Galhau said his proposals to limit the influence of private traders on the cryptocurrency market are not a reaction to Facebook’s plans, they simply respond to rapidly developing technologies and the needs of banks in digital currency.

Digital currency may be useful in connection with the reduction in cash transactions in some countries, the head of the French Central Bank stressed.

“In some countries of Northern Europe, in Sweden and the Netherlands for example, the use of banknotes is falling very quickly, and they are wondering if we need to give citizens the right to digital money, which are no longer physical banknotes, but have the same qualities, especially security” – Said the banker.

digital money

He added that central banks are planning experiments with digital money, and that this issue will be studied by eurozone bankers.

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