By Hassan Mehmood (Saudi Arabia)
François Villeroy de Galhau is the presiding governor of Central Bank of France. Speaking at the Paris Europlace Financial Conference yesterday, he claimed that it was high time for the European Union authorities to consider a digital assets ban. He further added that it was a matter of urgency as digital assets can threaten the sovereignty of the Euro in the region.
It should be noted that France is considered to be one of the more crypto-centric regions in the world. French Parliament passed a bill that enabled the crypto-based enterprise to apply for a practice license from the AMF or Autorité des marchés financiers in 2019. Villeroy is not only urging the state officials to take action about crypto, but he is appealing to the EU lawmakers that would impact a much larger jurisdiction.
Governor Claims that Cryptocurrencies would Dethrone Fiat Currencies in a Matter of Two Years
Addressing the attendants at the Europlace Financial Conference, Governor Villeroy claimed that crypto regulations should not remain unaddressed anymore. He explained that during the Coronavirus Pandemic, more people stopped using fiat and switched to cryptocurrencies. He also sounded an alarm to the financial authorities by claiming that the increasing cryptocurrency trade volume can erode the monetary supremacy of the region.
Also read:The European regulators have been issuing their reservations about DeFi markets from time to time. There have also been incidents as many reported cased of crypto scams. On the other hand, the investors seem to have no issues with preferring decentralized platforms for remittance and trading over the traditional fintech organizations.
France is Moving Forward with its CBDC Plans and Conducting more Tests
The central bank of Europe is working on CBDC technology at a fast pace. The bank authorities have already conducted a mock trial for a CBDC called project Jura. The test was based on crypto-centric services for the wholesale debt market rather than retail launch. Project Jura has taken place in collaboration with SEBA, a Swiss digital asset bank, Luxembourg bank, as well as federal securities depository of Luxembourg.
On the other hand, the bank of France has invested $2.4 million to leverage interbank blockchain technology. This new technology would allow French banking officials to launch a personalized version of CBDC. Villeroy also claimed in 2020 that financial organizations might move to launch community stablecoins that could further damage the necessity for fiat currencies among consumers.
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