On January 25, Francois Villeroy de Galhau explained his stand regarding cryptocurrency assets. Villeroy, the Governor of the Bank of France, also believes that only central banks should issue.

He acknowledged the benefit of cryptos in cash transactions but disagreed over the control of digital assets by private entities. According to Villeroy, “currency cannot be private; money is a public good of sovereignty.”

He explained himself further during an interview with France Inter, highlighting a decline in cash usage across several countries in Europe and the possibility of digital alternatives being a worthwhile alternative, especially in northern Europe.

Villeroy mentioned the consideration of giving the people in the northern European countries the right to digital money having the same quality as a physical bank note, especially the security of a central bank.

In 2019, people became more interested in crypto backed by banks as Facebook announced plans to introduce stablecoin (Libra). Some stablecoins were launched before and the majority is now in popular usage. Facebook included Coinbase, Lyft, Uber and more in the Libra Association.

However, after the announcement, lawmakers, regulators and government officials worldwide started criticizing the project. Notably, Germany’s finance minister, Olaf Scholz, said in recent times that a parallel currency is unacceptable. Bruno Le Maireof France likewise pledged to block Libra in Europe.

Some of the members of the Libra Association quit the project: Visa, eBay, Stripe, and Vodafone.

Notwithstanding, Villeroy noted that his statements were not directed at Libra, but he was reacting to fast-evolving technology. Whichever is the case, the pioneering central-bank issued digital currencies could come up anytime soon in Europe.

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