Digital currency cannot be private, says French central banker

Paris: Digital currency could be useful as cash transactions dwindle in some countries but central banks should be in charge of issuing it, not private companies, Bank of France Governor Francois Villeroy de Galhau said on Saturday.

Spurred by the rise of cryptocurrencies and Facebook`s plans to launch its Libra currency, central banks worldwide are looking into the possibility of issuing digital money to prevent the loss of state control over money.

Villeroy said the proposals were not a reaction to Facebook`s plan, responding instead to fast-evolving technology and some banks` need for digital currency. He added that private citizens could also start wanting an alternative to cash.

Asked whether such digital money could be issued by private companies, Villeroy said "currency cannot be private, money is a public good of sovereignty".

He added that central banks were planning experiments with digital money and that the issue would be studied by the Eurosystem euro zone central banks.