Denis Beau, deputy governor of France’s central bank, Banque de France, has recently made comments about the approach of central banks to cryptocurrencies.
Beau spoke on October 16 at the Official Monetary and Financial Institutions Forum convention in London, where he discussed the role crypto assets play in present global financial payment system.
He said that the conventional bank-based ecosystem could face major changes because of the multiple technological developments, including blockchain and distributed ledger technologies, adding:
“With the emergence of so called crypto-assets […] and so called stablecoins, we may also see new settlement assets develop which may compete against and possibly, according to their promoters, replace commercial and central bank money as settlement assets at the center of our payment systems.”
Beau continued by suggesting that stablecoins of a potentially big size and reach could present unpredictable challenges of “system-wide importance, to competition policy, financial and monetary stability.”
He went on to add that central banks have got just three available options to address cryptocurrencies.
One would be to totally ignore cryptocurrency assets, which wouldn’t mitigate any of the potential risks. Another option would be to ban all cryptocurrencies, and thirdly and the most preferred option in Europe and France according to the deputy governor, is to develop and standardize cryptocurrency regulations across the spectrum.
The caveat with standardization
Of course, the lack of standardization of regulations and procedures in the crypto and blockchain sectors has been identified as a challenge for both regulators and industry players.
“Big Four” professional services company Deloitte pointed out the lack of standardization as a significant block to blockchain adoption in a report in 2018.
Monero (XMR) core developer Riccardo Spagni has previously said that unequal international regulatory standards will lead to crypto-related brain drain, as the personnel involved in the industry migrates to the most favorable jurisdictions.
Legislators in some nations have tried to get in front of such a move of talent and investment by making friendly regulatory surroundings within their native jurisdictions.
Earlier 2019, the U.S Representative Warren Davidson reintroduced the Token Taxonomy Act, which is a bill that would exclude crypto from categorization under U.S. securities laws.