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Does Monaco have its own language, or local dialect?
Yup. Close to the dialect of Genoa, which Monaco sits next to: Monégasque dialect.
There’s been some promotion of Monegasque recently, but Monaco isn’t in the right part of the world for promoting small languages. The Duchy of Savoy (in the same general area, and homeland of Franco-Provençal/Arpitan) made French its official language three years before France did, and 300 years before they became part of France.