France has emerged as a world leader in blockchain innovation. Growing interest in cryptocurrency has inspired many fintech startups and other such endeavours to prosper in the country. France has, since Brexit, become the second-largest economy in the European economic zone after Germany. As a European financial leader, France has now started testing a digital euro.
Ledger Insights reported that Banque de France Governor François Villeroy de Galhau stressed that creating a digital euro is positive. He indicated that France must be a leader in the global trend towards central bank digital currencies.
De Galhau further stressed a window of one to two years to complete development, testing, and adoption of a digital euro. He argued that as digital assets become increasingly popular, they threaten the stability of the traditional financial sector. Thus, they must be integrated into the traditional banking sector.
The bank governor is confident that the development of a digital euro with substantial private sector involvement could mitigate the consequences that virtual currency has posed to the traditional financial systems in France and globally.
Coindesk reported that both of Europe’s two biggest economies, France and Germany, have looked on skeptically as BigTech firms continue to dominate the European financial scene and produce their own digital currencies that rival the local fiat currency. However, the digital euro could prove to be a safe haven against further domination by BigTech firms.
The call for the digital euro comes as France has emerged as a leader of blockchain innovation and cryptocurrency usage. Recently, 15 000 French restaurants announced they would accept cryptocurrency as a means of payment. Clients can order through an online food ordering service platform called Just Eat.