Bank of France governor, François Villeroy de Galhau, has recommended the urgent creation of a framework for cryptocurrency regulation to avoid potential erosion of Europe’s monetary sovereignty.
“I must stress here the urgency: we do not have much time left, one or two years. On both digital currency and payments, we in Europe must be ready to move as quickly as needed or risk an erosion of our monetary sovereignty — something we cannot tolerate,” Villeroy said during a Paris Europlace financial conference on Tuesday.
The Bank of France governor delineated how cryptocurrencies have played an increasingly important role in financial markets. The use of fiat money decreased during the early stages of the COVID-19 pandemic, a drift that Villeroy believes could render central bank money insignificant.