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News- The governor of the Bank of France, Francois Villeroy de Galhau, has stated that Europe must prioritize crypto regulation or risk digital assets undermining its monetary sovereignty
- Failure to act, according to the governor of the central bank, would erode our monetary autonomy and maybe undermine the euro
- Given the rising importance of cryptocurrencies in regional markets, Villeroy called on the EU to establish a regulatory framework in the next months
Francois Villeroy de Galhau, governor of the Bank of France, stated that Europe must prioritize crypto regulation or risk digital assets undermining its monetary sovereignty. Villeroy stated today at the Paris Europlace finance conference that the European Union only has one or two years to develop a legislative framework for cryptocurrencies. Failure to act, according to the head of the central bank, would result in the eroding of our monetary sovereignty and a possible weakening of the euro. He emphasized that : they don’t have much time left, maybe a year or two. They need to move as rapidly as possible in Europe on both cryptocurrencies and payments.
The French central bank is about to embark on a series of large-scale experiments, the results of which might be used to alter the way money operates. Cryptocurrency will not be supported. The identities of eight participants in the trials, as well as the scope of the work, were disclosed today by the Banque de France, the country’s central bank, which works with the European Central Bank to decide the continent’s monetary policy.
The remark from one of the world’s most prestigious central banks demonstrates how the world’s most prestigious organizations are racing to learn the best that Bitcoin and its underlying blockchain technology have to offer, but only within certain parameters. Neither blockchain, the shared ledger that allows bitcoin to exist, nor distributed ledger technology, a more sanitized term for the wider set of technologies, were addressed by name in the statement. As a result, the effort also aids in defining the parameters of any actual deployment of the technology.
Given the rising importance of cryptocurrencies in regional markets, Villeroy called on the EU to establish a regulatory framework in the next months. During the first few months of the epidemic, the usage of cash decreased, a pattern Villeroy believes might lead to the marginalization of the use of central bank money. The governor of the Bank of France has already cautioned authorities about the dangers of cryptocurrencies, such as stablecoins and CBDCs (central bank digital currencies).
He stated in September that major internet corporations may establish private financial infrastructures and monetary systems, including issuing their own stablecoins, which could have a long-term negative influence on EU financial sovereignty. The bank completed a trial program for its own CBDC in January, later claiming that investors had bought and sold 2 million euros ($2.4 million) worth of simulated shares. The Bank of France has stated that it would undertake further digital currency tests this year.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
