France warns of Cryptocurrency Outcomes

France warns of Cryptocurrency Outcomes

As cryptocurrency market is one the rise, Bank of France governor fears France is running out of time to regulate its cryptocurrency policy.

Francois Villeroy de Galhau; Governor of France’s central bank spoke in Europlace financial conference about the importance of “considering crypto regulations as a priority or risk digital assets challenging its monetary sovereignty.”

As France’s interest in cryptocurrency grows bigger and bigger, so does its fear of risking an erosion of their financial sovereignty which would diminish the power the euro still holds. “I must stress here the urgency”, said Villeroy during the conference, “we do not have much time left, one or two years. On both digital currencies and payments, we in Europe need to move as quickly as possible.”

Villeroy was never shy on expressing his opinion against cryptocurrency. To him Bitcoin and other forms of digital coins are not considered a currency, not even a digital one. It is nothing but a hypothetical asset as its value and volatility has no economic basis and no one is responsible for it.

Though he has previously warned regulators against the upcoming risks that could transpire from France adopting decentralized digital money, during that conference, his main goal was to emphasize on the role big tech companies are playing.

The potential risk of cryptocurrencies was one of the main concerns the Bank of France Governor warned against. This includes stablecoins and central bank digital currencies (CBDC).

“Big tech companies could potentially build private financial infrastructures and monastery systems,” he added during the conference.

In the long run, this would lead tech companies to have the absolute freedom to issue their own stablecoins which would severely influence financial sovereignty in the EU for decades. 

The potential risk of cryptocurrencies was one of the main concerns the Bank of France Governor warned against. This includes stablecoins and central bank digital currencies (CBDC).