“France must innovate in cryptocurrencies” – Bitcoin – Cryptocurrency 2020

In its report on Digital Sovereignty which has just been made public, the Senate is taking stock of the measures to be taken and the areas to be encouraged so that France can take leadership in such strategic areas as cybersecurity, AI or data protection.

This study also places our territory in the more global framework of the power struggle that the United States and China are waging in cyberspace.

The report reserves a special place for the policy that France should pursue in terms of cryptocurrencies – or “crypto-assets”, according to our national definition – so as not to be overwhelmed by the Facebook Libra or a central Chinese crypto.

Extending the PACTE Law

This Senate document, chaired by Franck MONTAUGÉ and reported by Gérard LONGUET, is an extension of French policy on digital innovation, the most tangible manifestation of which has been the law PACT from May 22, 2019.

It will be recalled that this PACTE law interests us more particularly insofar as it includes a certain number of provisions aimed at oversee and support the growth of the nascent crypto ecosystem (in particular with regard to the legal framework concerning ICO and the taxation of tokens).

Among other consequences of this founding text, the AMF (Autorité des Marchés Financiers) quickly established a system of VISA optional presented as a form of label attesting to the conformity of crypto operations carried out on the national territory.

The Senate report of October 1, 2019 is therefore a perfect extension of a very “Start-up nation” to be active and quick on a subject considered strategic. And if this subject is strategic it is because everyone understands that it was urgent to occupy the field before evolving in a world which would be dominated by choice by the Libra from Facebook or a CryptoYuan Chinese!

When is a crypto-Senate?

Finding your place between Mark Zuckerberg and Xi Jinping

If the document takes up some fundamentals to present the industry and the ecosystem (let’s not forget that the report is aimed at senators …), the authors quickly identify two major threats:

  • The Libra project of Facebook
  • The emergence of powerful state cryptocurrencies – in this case Chinese.

Regarding the project of stablecoin of Facebook, if the rapporteurs recall that it may never see the light of day, it is to emphasize that the emergence of a global private cryptocurrency is only a matter of time. However, from the point of view of States, underestimating this threat would be worse than a mistake, a fault.

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In addition, the parliamentary report, while it mentions multiple approaches emanating from several nations and central banks working for the emergence of state cryptocurrencies around the world, recalls above all the general consensus: China seems to be the most advanced on this subject and who could take everyone by surprise with the launch of a crypto-Yuan (or crypto-Rombini) who will not hide his ambition to outright dethroning the dollar God!

“According to the latest information from the Chinese People’s Bank in August 2019, China may be the first state to issue its own cryptocurrency, a stablecoin backed by the yuan. This project, which started in 2014, is now in the testing phase and aims to gradually replace the use of cash, but also to better monitor the transactions of its users. ” Senate Report on Digital Sovereignty

The report’s recommendations: More Europe and central bank stablecoins

The report points out that coping with currency changes – and potentially geopolitical – global accompanying the rise of the crypto-economy, necessarily implies a European response and in particular the emergence of economic leaders on the ancient continent, as well as the establishment of a cross-border payment system inexpensive and efficient.

As for the most immediate applications, this is the moment that the report chooses to quote Bitcoin, Phoenix born in the smoking ruins of the 2008 crisis:

“It is interesting to note that bitcoin, the most famous cryptoactive agent, appeared in 2009, when the financial system was going through one of the most serious crises in its history. The promises of cryptoactive agents, particularly in terms of transparency and decentralization, would be assets that our national central banks and the ECB could seize. “

“The birth of a central bank digital currency (CBDC) could support the raising of funds in tokens and the financing of digital innovations, investors can then call on this guaranteed asset, without risking uncertainty related to the volatility of private crypto assets. Also advocates a reduction in the use of cash in France for a CBDC. “

To see our favorite crypto go into a Senate report, without being associated with the words “terrorism” or “money laundering” is a pleasure that is savored with a good cigar and a brandy.

However, to note in parallel that the original idea and the values ​​of Satoshi Nakamoto, supposed to offer an alternative to banking practices, serve 10 later as sources of innovation for these same banks could nevertheless, leave a somewhat bitter aftertaste to this noble drink

“France must innovate in cryptocurrencies” – Bitcoin – Cryptocurrency 2020
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