France has always played an important role in the European panorama. The French insistence on being at the forefront of the defense and technology sector is now extending to the economic and financial sector. This scenario includes the move of the European Banking Authority (EBA) from the UK to Paris. EBA ensures an effective and uniform level of regulation and supervision in the European banking sector.
In this context, the intention of the governor of the French central bank, François Villeroy de Galhau, was born to create a Task Force entirely dedicated to the study of cryptocurrencies. In the projects of the governor of the French Central Bank, the Task Force should be representative of the 7 countries of the G7, headed by the French representative of the European Central Bank, Benoit Coeure. With this decision, France would give life to a technologically advanced Europe at the monetary level, while maintaining a management supremacy in this highly strategic sector for the future of the EU. The project foresees its realization before the entry into force of the new Facebook cryptocurrency, Libra, set for 2020.
According to international scenarios, many states are creating teams of experts in the sector related to cryptocurrencies and Blockchain technology. The latter now makes it possible to overcome various problems concerning immediate state economic resources, and is increasingly becoming a solution for economic and liquidity crises. The concept of Blockchain refers to a new technological reality, which is based on an electronic register, according to which registered people can exchange money without the use of banks or public authorities around the world. France has been moving in this area for some time, supporting the modernization of its production apparatus. The 4.5 billion euros allocated to the innovation fund have allowed France to finance projects of technology companies (European and French) in the field of Blockchain technology, launching a challenge to Chinese and American multinationals. To date, technological innovation is conceived as a weapon to obtain competitive advantages over the economies of other countries, similar to what happened during the cold war with MAD, Mutual Assured Destruction.
The transalpine country wanted to spread the Blockchain culture among citizens, trying to make them understand the risks and advantages of so-called crypto-assets. These constitute a future scenario that allows the union between markets and technology. Not only do they represent a system of decentralized currencies, but also a reality full of services, comforts and digital goods that allow the creation of Web 3.0. There are three different types of crypto-assests and they are divided into Crypto-currencies, Cryptotoken and Crypto-commodities. Cryptocurrencies, in fact, are coins that have a series of important characteristics comparable to normal coins, with the advantage of being able to be used without being traceable in transactions. Among these, there are Bitcoin and Litcoin. Cryptokens are similar to Cryptocurrencies, but they are distinguished from them by the lack of concrete use in transactions. Cryptokens are mainly used to finance new digital projects (crowdfunding), but they are not real cryptocurrencies. Normally they are at the head of the Blockchain chains. Crypto-commodities, on the other hand, have not yet had a certain definition in the European context, although they are rapidly evolving and spreading. The primary offers of crypto-assets (or tokens), together with the crypto-assets themselves, have elements of similarity with the public offerings of financial instruments / products for the world of cryptocurrencies.
Alongside these crypto-assests, France was the first state to provide a regulatory framework for cryptocurrency issuers. These may request a license or approval from the AMF, Autorité des Marchés Financiers. License (or approval) is optional. On the basis of the approved projects, the MFA creates a list of particularly innovative and attractive ones.
France's strategic goal is to represent a new Delaware for technology and monetary companies that can find the ideal conditions for their development. Again, the French state has decided to cooperate with Germany. In fact, the French finance minister Bruno Le Maire, together with the German representative Olaf Scholz, presented the developments of the French project to the other G20 ministers. Paris would like Jean-Pierre Landau (French senior official) to be entrusted with the task of analyzing in depth the main issues concerning cryptobens and their impact on the world economy. It is hoped that the historic fruitful cooperation between France and Germany, which has led to the realization of important projects, can be replicated in the economic / monetary sphere, providing all EU countries with competitive advantages over other world economies.
By Domenico Barbato
Translated by Arianna Giannino