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France: First eurozone country to test its own digital currency in 2020

Last updated on March 9, 2021

05.12.2019, 07:28 am

France wants to be the first country in the Eurozone from 2020 to test a digital currency. The should be suitable for the transfer of very large amounts, as the head of the French central bank said.

China is reportedly on the verge of starting its own official digital currency , now France also wants to push appropriate tests. From 2020, a suitable currency for the transfer of very large amounts will be tested, as announced by the Governor of the central bank Banque de France, François Villeroy de Galhau, on Wednesday. Moreover, the French central bank also wants to support studies for a digital euro, writes the Futurezone .

Digital currency: Libra accelerates e-euro plans

After the continued success of the cryptocurrency Bitcoin, the planned digital currency Libra of the US social media group Facebook has most likely recently caused an acceleration of the ideas for a digital currency in the Eurozone. In addition, digital currency advocates see faster transactions at a lower cost.

Only a few weeks ago, French Finance Minister Bruno Le Maire had criticized Libra at an OECD conference and declared that the Facebook currency should not be allowed on European soil. A means of payment in the hands of a private company could cause “significant disruptions in the financial system”. The German government is also critical of Libra. Le Maire had demanded a kind of public digital currency.

Banks and retail demand European digital currency

As early as the beginning of November, the European Central Bank had become aware of competition with its own digital currency. Earlier this week, the German Trade Association (HDE) and the German Association of Service Providers for Online Providers (BDOA) once again demanded the introduction of a state-owned digital euro in advance of the EU Finance Ministers meeting on Thursday. Businesses need independent alternatives to global payment systems in an increasingly digital world, according to the associations.

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