On the basis of these checks, under Article L.141-4 of the Monetary and Financial Code, “ if it considers that any means of payment offer insufficient guarantees of security, it may recommend that the issuer take all appropriate measures to remedy the situation.

In order to perform its duties, the Banque de France conducts oversight assessments of existing payment instruments and may request access to any information it deems useful. Moreover, the Banque de France is responsible for verifying the security and efficiency of work carried out by third-party service providers on behalf of credit and payment institutions. The law of 28 January 2013 extended this scope further to cover special payment vouchers such as luncheon and holiday vouchers, which are subject to special legal and regulatory requirements. In practice, this covers all bank transactions, as well as all activities relating to the issuance and management of non-cash payment instruments. 311-3 of the Monetary and Financial Code defines cashless means of payment as “ any instrument which enables any person to transfer funds (…), regardless of the medium or the technical process used”. The scope of the Banque de France’s oversight is broad. The Banque de France was given specific responsibility for the oversight of cashless payment instruments by the law of 15 November 2001, which requires it to ensure “ that the means of payment other than fiduciary currency are secure and that the regulations applicable thereto are pertinent” (Article L.141-4 of the French Monetary and Financial Code). The institution therefore refrains from promoting any particular technological solution.

In overseeing cashless means of payment, the Banque de France must take care to avoid stifling competition and innovation in what is clearly a rapidly evolving and hi-tech field. In short, consumers need cashless payment instruments that are efficient, reliable and secure. Their security is thus paramount in order to maintain public trust in the currency and guarantee the smooth functioning of the economy. Cashless payments play an increasingly prominent role in the French monetary system.

Oversight meaning