The chairman of the Bank of France believes that amid economic uncertainty, the state digital currency is more likely to be accepted by the community than any cryptocurrency.
François Villeroy, speaking at a session of the World Economic Forum, suggested that recent events in the cryptocurrency market, which turned into massive sales, pushed people to trust banks more than digital currencies.
The head of the central bank explained that the shift in behavior may be due to the nature of private cryptocurrencies, which, according to him, do not contribute to building confidence in the industry. Therefore, citizens may be more willing to use trust-building products such as Central Bank Digital Currencies (CBDCs).
Gallo believes that cryptocurrencies are unreliable because they “have no person responsible for their value.” This problem is likely to accelerate the development of the state digital currency.
Villeroy emphasized the need for central banks and the private sector to collaborate on the development of a CBDC. The official says confidence in banks is growing despite most regulators being blamed for soaring inflation.
Last week, after the collapse of the UST stablecoin and the LUNA cryptocurrency, members of the G7 council of countries stated the importance of speeding up the development of legislation to regulate digital assets. At a meeting of finance ministers and heads of central banks of the G7 countries, issues of regulation of cryptocurrencies were discussed. The European Commission plans to introduce a central bank digital currency bill early next year, with the launch of the digital euro not until 2025 at the earliest.
Source: Bits
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