The Bank of France has announced that digital central bank money (CBDC) is not a priority for banks, while cryptocurrency regulations are more urgent.
Denis Beau, Deputy Director General of the Bank of France, attended a conference in Paris on financial regulations.
For Beau, one of the things the Bank of France should consider is that the smooth running of the French payment system does not depend solely on the Central Bank’s issuance of a CBDC. But he acknowledged that digital currencies can improve the payment system and make access easier, cheaper and more convenient.
“However, these innovations also pose risks to our payment system,” Denis Beau told the audience. He added that he is not particularly a fan of digital currencies, but sees them as a threat to the central bank.
He said that CBDCs can solve many of the challenges posed by digital currencies, and he stated that he has concerns even with CBDCs.
One of them is the effect of CBDCs on commercial banks. The biggest risk would be a drastic reduction in bank deposits.
said.
He told the audience, “We see regulation as a priority because the smooth functioning of our payment system depends first and foremost on an open, fair and balanced regulator.” said.