Categories: CryptoNews

Banque de France Report Calls for More Surveillance on Digital Currency Transactions

A newly-released released report by the French central bank examining the stability of the banking system within in the EU, also mentions blockchains and digital currencies in several of its sub-sections.

The report, Financial Stability In The Digital Age, is a collaboration between Banque de France and many prominent financial experts from various central banks, financial institutions and academics.

Governor of the French central bank, Francois Villeroy De Galhau, mentioned in the first chapter of the report that digital currencies such Bitcoin effectively challenge the central bank’s authority to issue legal tender.

A rough translation reads:

“In seeking to compete legal tender, virtual currencies seem introduce a strong break because they have the ambition to challenge the issuing privilege of central banks.“

Villeroy also points out in the report that the French central bank issued a warning to all consumers in 2013 regarding the risky nature of dabbling in digital currencies, and that this new digital money may “promote circumvention of the rules relating to the fight against money laundering and the financing of terrorism.“

Additionally, he recommends that authorities need to start tracking and compiling figures on exchange activity between fiat and digital currencies, “To better prevent these risks, conversion activity against currency which is legal tender should be analyzed.” writes Villeroy. While the report highlighted the potential issues regarding digital currencies, it also mentioned that cryptocurency volumes and transaction numbers are still quite low within the EU.

Related Post

But their use is still very low: the amounts exchanged are lower € 100 million per day for volume less than 200 000 transactions, compared to 70 billion euro of payments corresponding to 250 million operations performed every day in the European Union.

In the report, the governor also urged the French central bank and the Financial Stability Board to stay on top of advancements in the blockchain space:

“Furthermore, consideration is being given today the Bank of France, and more widely within Top of the Financial Stability Board to follow the development of initiatives around the technology blockchain , both as regards application possibilities it seems to offer that with respect to the issues raised particularly in terms of security.“

 

Image credit: 1

If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

Recent Posts

Here’s Why Precious Metals Belong in Your Portfolio

Whether you already have a large portfolio or you’re just getting started in investing, precious…

1 hour ago

Gala Price Doubles After Town Star Nodes Announcement

Gala price is up over 93% today, making it the biggest gainer on Crypto.com, followed…

5 hours ago

Shiba Inu Price Holding Support as the FUD Continues

Shiba Inu's price continues to hold the $0.000049 support level amid FUD from major news…

7 hours ago

Top 5 Metaverse Coins With Over $1 Billion Market Cap

Following NFTs and Meme cryptocurrencies, Metaverse coins are undoubtedly the next big hype in crypto.…

9 hours ago

The Future of Eyewear is Looking Bright

The global pandemic changed many different aspects of our lives. One thing that has been…

12 hours ago

CRO Price Up 22% Amid Crypto.com’s New LA Arena

Crypto.com's CRO is up over 22% today, setting a new all time for the cryptocurrency.…

14 hours ago

This website uses cookies.