French Central Banker: The World Needs to Standardize Crypto Regulations

A French central banker is calling for a global regulatory framework on crypto assets.

Oct 16, 2019 at 6:30 p.m. UTC
Updated Sep 13, 2021 at 11:35 a.m. UTC

A French central banker is calling for a global regulatory framework on crypto assets.

at an Official Monetary and Financial Institutions Forum (OMFIF) meeting in London on Tuesday, Denis Beau, a deputy governor of Banque De France, said:

“There is indeed a need for overall consistency to prevent regulatory arbitrage under the ‘same activities, same risks, same rules’ principle."

And the only way to ensure that, he said, is with a standardized regulatory regime.

The comments come as Libra, the Facebook-led digital currency project, has raised the ire of regulators and central banks as a threat to the financial world order.

Comparing Libra to central bank-issued digital currencies (CBDC), Beau said the yet to be launched coin “may achieve significant market power, thus posing risks to security and financial stability.”

Beau did not offer any direct answers to Libra’s challenge, other than to note the need for global regulations and hopes that central banks will experiment with CBDCs of their own.

He was bullish on the technology. In a global financial ecosystem reliant on costly, and often cumbersome, money transfer mechanisms, Beau said that distributed ledger technology "could help remedy” many of the current issues.

But tokens available today cannot fill that niche, he said. Cryptocurrencies are generally too volatile and pricey to transfer funds effectively and lack the government backing he said is necessary to become a trustworthy store of value, Beau said.

“They can also bring material risks to our payment systems which, if unaddressed, might introduce new sources of fragmentation, instability and fraud.”

That should give central bankers reason to consider new ways to offer their money supply, he said.

“The potential role of a wholesale CBDC is, in my view, worth considering, if not desirable.”

Bank of France image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
OCC: ‘No Contagion’ Post-Terra Collapse

A surprisingly measured set of comments from Acting Comptroller Michael Hsu.

A surprisingly measured set of comments from Acting Comptroller Michael Hsu.

CoinDesk - Unknown
2
CoinDesk - Unknown
Nvidia’s Crypto Mining Chip Revenue Now 'Nominal' Following Months of Decline

A drop in crypto mining chip sales dragged down the chipmaker’s OEM business unit year-over-year.

A drop in crypto mining chip sales dragged down the chipmaker’s OEM business unit year-over-year.

CoinDesk - Unknown
3
CoinDesk - Unknown
How to Make It in the Metaverse

In this work of fiction, a woman buys a home in the metaverse because New York City rent is just too high. But virtual worlds exact their own cost of living. This piece is part of CoinDesk's Metaverse Week.

In this work of fiction, a woman buys a home in the metaverse because New York City rent is just too high. But virtual worlds exact their own cost of living. This piece is part of CoinDesk's Metaverse Week.

CoinDesk - Unknown
4
CoinDesk - Unknown
Play-to-Mint: The New Frontier of Metaverse Gaming

CoinDesk - Unknown