Denis Beau, the deputy governor of the French central bank, also known as Banque de France, has called out for a more global approach to regulation for crypto assets. According to him, there is a need for more consistency in deciding how to regulate the crypto world.
Because of this, the only way to properly ensure that the standardization is happening is to really reunite and set up the guidelines.
His comments come at a time in which Facebook’s Libra project has raised several doubts in the world about how to deal with a project such as this one. Beau cited Facebook’s currency and also talked about central bank digital currencies (CBDCs), which haven’t been launched yet, but will certainly be soon.
Beau affirmed that he hoped that more banks would experiment with their own digital assets, as he was very bullish on the technology, especially in the long term. According to him, the financial system is still relying on several slow and cumbersome mechanisms to transfer money, so the blockchain would certainly be very important when it comes to upgrading this.
The banker affirmed that the tokens that were released so far, including Bitcoin, were simply unable to fill up the position of becoming a faster way to send money. Most cryptos, in his opinion, are extremely volatile, so they are not very attractive to everyday use or to become a real way to store value.
He also believes that these assets, if left to be the solution, can also bring many risks to financial stability, such as fragmentation and increased risks of fraud. Because of this, bankers should consider creating their own solutions.