Central Banks Should Leave Cryptocurrency To Private Corporations, Says PwC Blockchain Exec

Pauline Adam Kalfon, a blockchain and financial services partner at PwC France, said that the central bank of France is unlikely to issue its own digital currency because it would be complex to deploy.

According to Kalfon, while several recommendations have been made to further investigate the idea of issuing its own digital currency, France’s central bank may not be the best entity to drive forward such a digital currency project, which would sit within the prerogatives of the European Central Bank.

“Banque de France could seize technological leadership by following European Central Bank guidance,” Kalfon said. “It is clear that a European-level project would be very complex and challenging governance-wise, requiring alignment and the political consensus of all relevant stakeholders from each Member State.”

Kalfon said that central banks should leave issuance of digital currencies to private corporations, such as Facebook and JPMorgan, which are both planning to launch their own cryptocurrencies.

“This would reduce the likelihood of potentially negative consequences on the economy arising from any central bank issuing a digital currency,” she said. “Only then could central banks make a move once digital currencies have been “battle-tested by corporations.”

In a survey published earlier this year, the Bank for International Settlements (BIS) found that 70 percent of central banks worldwide are conducting research into central bank digital currency (CBDC) issuance. Among banks engaged in CBDC research, around half have reportedly moved to experiments and hands-on proof-of-concept work. However, only five central banks have actually progressed to running CBDC pilot projects.

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