- The Governor of Bank of France, Mr. Francois Villeroy de Galhau, central banks should be held in charge of issuing the transactions and payments, not the private companies.
- Facebook decided to announce its plans regarding the launch of the cryptocurrency, which goes by the name Libra, a lot of things changed.
As we are moving ahead in technology day by day, the digital currency is emerging out to be a useful mode of payment. This rise has seen a downfall in the cash transactions in various countries, which have realized the importance and efficiency of digital currency.
However, according to the Governor of Bank of France, Mr. Francois Villeroy de Galhau, central banks should be held in charge of issuing the transactions and payments, not the private companies.
Soon after Facebook decided to announce its plans regarding the launch of the cryptocurrency, which goes by the name Libra, a lot of things changed. Further, keeping in mind the rapid demand for cryptocurrency, it indicates the rise of it shortly as more and more countries are adopting it.
Various banks from around the globe have been looking for multiple opportunities and possibilities where they can issue digital currency to prevent the loss of state control over money.
Villeroy has stated that the proposals made were not a result of Facebook’s plan. It was a response to the rapidly-evolving technology and also due to the need for a digital currency for some banks. He further also added that soon the private citizens might as well start demanding an alternative to cash.
Villeroy further told France Inter Radio that in various north European countries, most prominently, Sweden and the Netherlands, the usage of banknotes has been witnessing a significant downfall, which is quite rapid.
All this is making everyone wonder whether there is an arising need to grant the citizens the right to digital money, which is no more a physical banknote. Instead, it has the same quality, notably the security of a central bank.
Villeroy also asked if private companies would be allowed to issue digital money. To this, Villeroy replied that the currency could not be private solely for the reason that money is a public good of sovereignty.
He had also added that the central banks have been planning experiments with digital money for a long time. Along with it, they also have said that the Eurosystem eurozone central banks would study the issue.