Deputy head of Bank of France Jean-Pierre Landau, the French government called “Mr. Bitcoin”, presented a new report to the Minister of Finance and economy of France Bruno Lameroo.
The report indicates that crypto-currencies are in a phase of technological and economic experiment. Their future is still uncertain, but several possible scenarios.
We can assume “full collapse and disappearance or marginalization of all available currencies,” which, in his opinion, very likely, or “natural selection”, which will lead to the emergence of one or two dominant currencies.
Another possible scenario could be the emergence of new actors of the digital world, social networking or ecommerce, which have developed their own payment system or its own internal currency:
At this particular stage the government should be guided by three principles:
- not to regulate cryptocurrency directly;
- to create favorable conditions for the development of the technology;
- To identify risks simply limiting the impact of cryptocurrencies on the financial sector.
In January 2018, Jean-Pierre Landau has been appointed head of the working group for the study of the evolution of rules for the regulation of cryptocurrencies. One of the main goals of the group was the fight against the use of cryptocurrency for tax evasion, money laundering or the financing of the activities of criminals and terrorists.
Jean-Pierre Landau said that a large number of rules imposed on cryptocurrency can lead to the fact that innovators in an attempt to get around them, slow down the development of the technology.
In its report submitted to the French government on 5 July, Landau described the “ambition” of cryptocurrency as “wonderful, how difficult it was not to satisfy them”.
A decade after the creation of Bitcoin, cryptocurrency payments are still not major, he says:
“Bitcoin payments represent only 0.2 percent of the transaction volume in the Euro area. The reason lies in the decentralized management of money. For monetary system it is impossible to reconcile three requirements: security, decentralization and efficiency,” says Landau.
The Bank of France, also criticized the nature of the control cryptocurrency and open source, which he called a “very poorly adapted” to the requirements of a stable currency in the long run, because fundamental decisions are made by the developer community informally.
Jean-Pierre Landau known as cryptocurrency skeptic. In 2014 in an article published by Financial Times under the headline “Beware of bitcoin mania — Tulip fever of the 21st century”, he warned the public about the stupidity of cryptocurrency investment, for which he earned the antipathy of cryptocommunist.