In the latest news from cryptocurrency world, the Bank of France believes that stablecoins will impact on EU financial domination. Recently, the governor of Bank of France announced that Europe is facing a new challenge. They have to overcome the challenges; which private sector global digital assets will make for EU.
He mentioned five EU countries, which are involved in this challenge. The countries consist of Italy, Germany, France, Spain and Netherlands. The mentioned governments all backed the European Commission’s in order to set regulations for crypto assets, especially stablecoins.
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Stablecoins will impact EU financial domination; governments should take action as soon as possible
In this statement, it is mentioned that all the five governments should take action in order to prevent stablecoins from operating in EU. In fact, they have to stop it until the clear regulations are stated around this type of asset.
Francois Villeroy de Galhau is the governor of Banque de France. Recently, he had a speech at the Bundesbank conference on Sept. 11. He said in his speech that France and other mentioned EU countries facing strategic and urgent choices on payments, which would have implication for the EU financial domination for decades to come.
Big Tech will take the power soon
He thinks that “Big Techs” are penetrating to the global market more than before. In fact, they are building a “private financial structure” coming along with a “monetary” system, which competes with the existing public monetary domination. But the fact is that very soon they will position themselves as managers and issuers of universal currency.
He added, that CBDC can play a significant role here. The Central banks are able to respond to the overwhelming pressure of private payments both domestically and globally by issuing their own CBDCs.
He believes that European CBDC should cover both retail and wholesale version. As a result, both public and financial institutions would be interested in using it.