French Central Bank calls for standardization of cryptocurrency regulation

Denis Beau, the Deputy Governor of the Bank of France, believes that governments in different countries need to agree on standards for regulating cryptocurrencies.

“There is a need for a unified approach to prevent differences in regulatory policies and to provide companies with the same actions, risks and rules,” Bo said at a forum of monetary and financial institutions in London.

Also, the representative of the Central Bank of France noted that the cryptocurrency project Libra, developed by Facebook, can “achieve significant strength in the financial market, which means it poses risks to the security and stability of the financial system.”

However, the Deputy Governor of the Bank of France did not provide any solutions to this problem, and only said that it was necessary to develop global regulation. He also believes that central banks of different countries should experiment with their own cryptocurrencies.

Bo noted that the global financial system now relies on expensive and often problematic mechanisms for transferring money. Distributed registry technology can help with this, but existing tokens are not suitable for this role due to volatility, lack of state support and trust.

“They can pose significant risks to our payment systems, which, if not eliminated, can lead to the emergence of new sources of fragmentation, instability and fraud,” concluded the Deputy Governor of the Bank of France.

Recall that recently, the Vice-President of the European Commission and the Commissioner for Euro and Social Dialogue Valdis Dombrovskis said that the organization plans to introduce new rules for regulating cryptocurrencies.