And bang! – Did you still have any hope of disrupting the ECB? All with magic money from the internet? It missed : ” Central banks are invincible according to Fed Chairman Jerome Powell. Central bankers met this Tuesday, September 27 at the Louvre Museum in Paris, to discuss the “opportunities and challenges of the tokenization of finance” and the role of central banks. The Journal du Coin was there, find the summary of its intervention.
“Cryptos are fine for five minutes”
All the elite of the international banking sector gathered today in the capital to discuss the tokenization of the economy. The rise of cryptocurrencies can no longer be brushed aside by traditional financiers. This new asset class is revolutionizing many services. And apart from their technical aspect or their characteristics, cryptos represent an idea. Now, it is difficult to kill an idea.
This is why central bankers have been working for several months to bring the whole sector to heel. Framing crypto assets is a matter of time and the launch of MNBC (central bank digital currency) is imminent. While decentralized finance (DeFi) is getting the attention of regulators, stablecoins seem to be their major concern. It is indeed a financial product that replaces fiat currencies issued by central banks. The loss of a monopoly and therefore control. Unacceptable for the FED as for the ECB.
Jerome Powell does not seem to have words harsh enough to qualify them: “ Some progress enabled by cryptoassets is actually very superficial. The public doesn’t realize that a stablecoin is just a private currency today, they take a shortcut and think of it as real money. But this is not the case. In addition, we have witnessed events justifying the implementation of appropriate regulation“.
Obviously, it is a disturbing competition and must be stopped dead. He even adds that the latter ” will be subject to specific regulations “while recalling that” central banks will always remain the only real sources of confidence“.
The MNBC roadmap already mapped out
Powell takes tweezers and speaks again in the conditional about the appearance of a hypothetical crypto dollar issued by the FED. However, the road seems clear and the President of the FED is already listing the four characteristics of an MNBC with burger sauce.
According to him, the latter would be:
- Intermediated
- Privacy Protector
- Linked to the identity of a natural person
- Transferable and interoperable
If you have read the Bitcoin whitepaper, no need for long speeches to understand that this proposal and the philosophy that guides it is at the antipodes of the crypto ethosinherited from anarchist cryptos and then from Bitcoin itself.
Powell concludes this sequence by adding that a compromise will have to be found between privacy protection and identity verification. All in all, a nice roadmap.
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