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​Digital Currency You need a global regulatory - Bank of France

2019-10-17 08:08 am | Resource: News Section | No Views : 22

​Digital Currency You need a global regulatory - Bank of France A French central bank governor has called for a global regulatory framework for Digital Currency around the world, local and international media reported.
In a speech at an official meeting of the Monetary Forum and Financial Institutions (OMFIF), in London, last Tuesday, October 15, Denis Beau, deputy governor of the Bank of France, said:
"There is already a need for general consistency of the cryptocurrency market to prevent regulatory arbitrage under" the same activities, the same risks, the same rules. "
The only way to ensure that was to have a uniform regulatory system for such currencies.
The comments come as Libra, a Facebook-led digital currency project announced in mid-June this year, angered regulators and central banks as a threat to the global financial system.
Comparing Libra to the central bank's Digital Currency market, Bo said the currency, which has not yet been introduced, "could bring significant market strength, posing risks to security and financial stability."
Beau has provided no direct answers to the crypto Libra challenge, other than referring to the need for global regulations and hopes central banks will try CBDCs on their own.
He was optimistic about technology. In a global financial ecosystem that relies on expensive and often cumbersome money transfer mechanisms, Bo said that distributed ledger technology "can help cure" many of the current issues.
The symbols available today could not fill that place. Cryptocurrencies are usually very volatile and cost-effective to transfer funds and lack government support, which he said is necessary to become a reliable store of value, Beau said.
"They can also pose physical risks to our payment systems which, if not addressed, may lead to new sources of fragmentation, instability and fraud."
He said this should give central bankers a reason to think about new ways of displaying their money, including the Digital Currency.
"The potential role of CBDC Wholesale, in my opinion, is worth considering, if not desirable."
 

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