The Deputy Governor of the Banque De France, Denis Beau has made some remarks about the protocol used by central banks on cryptocurrencies.
Beau expressed his concerns at an OMFIF conference that was held in London on the 16th of October, where he talked about the role that cryptocurrencies had to play in present-day financial payment networks in the world.
Creating Adequate Cryptocurrency Rules
Beau explained that conventional bank-based systems may encounter substantial transformations because of the numerous technological advancements like blockchain and DLTs. He went on to elucidate that the development of new digital assets which is likely to displace conventional cash. He added that Stablecoins of grand scale will be a big challenge for the importance of the existing financial system and could compromise the monetary stability of these systems.
He proposed that the apex banks consider 3 probable alternatives in addressing these issues:
1- They would have to dismiss cryptocurrency assets, which is unlikely to extenuate the potential threats.
2- They would have to interdict every cryptocurrency.
3- The most preferable alternative according to Beau, would be to create regularize cryptocurrency laws across the globe.
The Barrier Facing Blockchain Adoption
The absence of a standardized principle and protocol in the cryptocurrency and blockchain sector is being blamed as the major issue by regulators and crypto actors. Renowned professional services company, Deloitte pointed out in an announcement in 2018, that the absence of a standardized protocol was the leading barrier for the adoption of blockchain technology.
Riccardo Spagni, the core developer of Monero, advised that unequal global regulatory principles could lead to the emigration of cryptocurrency-associated talents into more favorable territories. Policymakers in different countries are striving to achieve more conducive cryptocurrency climates to attract talents and investments.
Sometime this year, US Rep. Warren Davidson reinstated the Token Taxonomy Act, which was a law that would see cryptocurrencies excluded from being listed under US securities rules.
Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.