The governor of the Bank of France has warned that Europe cannot afford to lose momentum in tackling the challenges posed by private sector global digital assets.
His warning came as five EU governments — Germany, France, Italy, Spain and the Netherlands — all backed the European Commission’s intent to draft regulation for asset-backed crypto assets, notably stablecoins.
In their draft joint statement, the five governments reportedly pledged to prevent global stablecoins from operating in the EU before all legal, regulatory and oversight matters have been addressed. The Commission is expected to put forth its proposals for regulating crypto assets later this month.
In his speech at the Bundesbank conference on Sept. 11, Banque de France Governor François Villeroy de Galhau stated:
“We in Europe face urgent and strategic choices on payments that will have implications for our financial sovereignty for decades to come.”
The most imminent risk, in Villeroy de Galhau’s view, is that “Big Techs,”