Bank of France Governor said European Union Must Adopt a Regulatory Framework Immediately as “We Don't Have Much Time Left”
Bank of France governor Francois Villeroy de Galhau has said that “We in Europe need to move as quickly as possible or risk an erosion of our monetary sovereignty.” He said this in the context of making cryptocurrency regulation a priority. Francois made it clear that if the European Union doesn’t “adopt a regulatory framework in the coming months”, its monetary sovereignty may get challenged from its monetary sovereignty.
Bank of France’s governor said at a Paris Europlace financial conference today that the European Union has 1 or 2 years left to establish a regulatory framework for cryptos. He made it clear that non-action by the EU may lead to the “risk of an erosion of our monetary sovereignty” and would ultimately weaken Euro. He went on to say:
“I must stress here the urgency: we do not have much time left, one or two years… On both [digital] currencies and payments, we in Europe need to move as quickly as possible.”
He underscored the point that during the first few months of the COVID-19 pandemic, the use of cash has decreased significantly. Francois Villeroy believes that this trend of plunging cash use may lead to “marginalization of the use of central bank money.”
Bank of France has already completed its CBDC pilot program in January 2021. It reported that around US$2.4 million (Euros 2 million) worth of simulated shares was bought and sold by the investors. The Bank of France has confirmed reports that it is going to carry out other test runs for digital currency in 2021.