He also indicated that although there is interest in the Central Bank of France to issue a cryptocurrency, certain operational challenges have yet to be resolved.
The former director of the Central Bank of France (CBDC) Christian Noyer, said that despite the interest of many central banks, the issuance of a digital currency backed by such institutions could still be about 10 years away within the European country .
According to information published by several news portals, Noyer said that the idea for the issuance of a state cryptocurrency has already taken time, precisely because people use less and less cash and the growing interest in these assets to Reason for the possible release of Libra from Facebook.
However, the former director of the Central Bank of France said that there are still many doubts among the main financial institutions, precisely because of fears related to the security of doing this type of assets, as well as the impact on the monetary policies of each country.
Scenario for a cryptocurrency in France
In view of the eventual issuance of a digital currency backed by central banks, Noyer said that these entities will likely see very closely what commercial banks will do in this line of financial services.
According to Noyer, one of the problems that the CBDC should solve has to do with the need for all users to manage an account within the institution. Instead of resorting to commercial banks as traditionally occurs, if the management of digital currency is centralized in the hands of the Central Bank, this would be directly responsible for establishing measures against financially illicit activities such as money laundering and financing of terrorist acts .
Noyer also stressed that a digital currency for the country must have the support of the Central Bank, as this would guarantee that people have greater confidence in the asset in question and can use it without any regulatory inconvenience.
China had already thought about it
Although the former CBDC manager believes that the issuance of a digital currency by the Central Bank could take some years, other countries such as China are already making progress in the development of such initiatives.
In what appears to be a race against the eventual launch of Libra from Facebook, the directors of the People’s Bank of China (PBoC) announced last year that the country would have its own cryptocurrency issued by the banking entity for this year, indicating that This is much higher technologically than the one supported by the social network, since they have been working on it for more than four years.
Although at the moment there is no exact date for the launch of the digital yuan, there are many governments and regulatory entities at international level that closely follow the steps of China, precisely to assess the possibility of implementing similar initiatives and adapting the concept according to The need of each country.