The governor of the central bank of France shared his opinion on the current situation of the crypto market against traditional financial services amid a significant correction in the crypto industry.
France is a very unique region in the world, where government agencies introduced an improved regulatory framework to keep the crypto businesses in compliance with traditional laws and rules. In particular, crypto firms in France are required to register with corresponding regulatory agencies, and further, these crypto companies are required to obtain different licenses to provide extended services.
On 26 June, During the World Economic Forum conference, François Villeroy de Galhau, the governor of France’s central bank, talked about the degrade of interest and trust among the population toward crypto because of the recent significant outflow of funds from the crypto industry, where Bitcoin plunged below its strong buy wall of $20k.
Bank governor said that crypto assets are unreliable because there is no responsible entity behind them, which can ensure their value. These things are further acting as catalysts for the bank to work more eagerly on Central Bank Digital Currency (CBDCs) development.
“In recent weeks, citizens have lost trust in cryptos, but more than in central banks without any doubt <…>Nobody is responsible for the value of cryptos and it must be accepted universally as a means of exchange.”
The governor noted that the majority of the Central banks were criticized because of the increasing inflation in the financial economy but still under these situations people have more trust with banks.
On CBDC development works, Governor emphasized the need for private sectors to work with the Central Bank to design a perfect model of Centralized digital currency, or say CBDC.
Earlier this, Governor appreciated the Bitcoin to introduce the new innovative technology but maintained the stance of the Central Bank to remain strict against cryptocurrencies.