- France has started making steps towards creating a sustainable and effective path for a Stablecoin payments system.
- The elite conference, organized by Paris Europlace and ConsenSys aimed at discussing the viable options for working with Stablecoin.
France has started making steps towards creating a sustainable and effective path for a Stablecoin payments system as visible in the address of Denis Beau, the First Deputy Governor of the Bank of France, at the “What Ambitions For Europe” Stablecoin Conference.
The elite conference, organized by Paris Europlace and ConsenSys aimed at discussing the viable options for working with Stablecoin.
Mr Beau’s address discussed the idea of Stablecoin through its advantages and disadvantages. He also outlined the current policy areas working towards Stablecoin adoption aimed at completing three major tasks.
Mr Beau stated that while on one side, it is necessary to understand the ability of Stable coins to improve the payment systems, on the other side, they also add on to considerable material risks. He added that it is the responsibility of private sector entities to “design arrangements which do not bring undue risks to our payment systems.” This thought was echoed by many policymakers at the recent World Economy Forum 2020.
Mr Beau further indicated that regulators from French and other economies in the European Union should work towards preserving the positive potential impact of Stablecoin, which further innovation will provide. Moreover, these regulators must coordinate integrated supervisory frameworks at the international level.
Finally, policymakers must ensure that they address through live experimentation the disadvantages of the current system. He noted that collateralized tokens could provide a faster and less expensive alternative to the existing systems for the retail consumer payments services as well as the wholesale payment clearing and settlement systems.
he also addressed the risk posed by the system by stating
He concluded by stating that it is necessary to keep an open-mind approach in order to gain an in-depth understanding of the technology evolving in the financial sector. They must also engage in experimentation before disapproving any innovation, he reiterated. It is a great sign for the digital currencies that blockchain topics are being discussed by bankers and policymakers. Even though one cannot predict the future of Stablecoin, its technological improvements are sure to be innovation priority.