Let Corporations to ‘Battle Test’ Cryptocurrency Issuance Before Central Banks Come in, Per PwC Partner
Implementing digital currencies has predominantly been an activity taken on by cryptocurrency exchanges. However, there have been a few banks that have sought to dip their toes in the water of the industry, with the most notable lately being JPMorgan with the JPM Coin.
While countries around the world explore this opportunity, partner Pauline Adam Kalfon of PwC France does not see France’s central bank following suit, according to reports from Forbes.
While speaking on this concern, Kalfon commented that there have been multiple recommendations to get involved, the idea would be too complex to actually follow through with. The alignment of all stakeholders would need to occur with each Member State to even make the option plausible.
Perhaps that is why Kalfon suggests leaving corporations like Facebook and JPMorgan to tokenize fiat currencies. Kalfon claims that leaving corporations to do this kind of work would keep central banks from causing economic problems. After the corporations pave the way, the central banks could step in.
French minister Bruno Le Maire warned about the speculative risks associated with investing in crypto assets back in January last year. By year’s end, he had become more welcoming to the idea, citing the potential that blockchain technology brings. He soon became an advocate for regulation, which would allow the technology to thrive.
Last month, Robert Ophèle, the chair of the Autorité des Marchés Financiers (AMF), spoke on the potential that the technology has to disrupt the financial industry. Considering this influence, the AMF chair added that adaptive regulatory framework would soon become a necessity.
In France, Kalfon noted that there is a thriving ecosystem that already has initiatives underway, both publicly and privately. France is already hope to one of the biggest incubators in the world – Station F – which is the host of Chain Accelerator. Chain Accelerator is the largest accelerator in Europe that is completely dedicated to the thriving blockchain tech.
As it stands, French MPs are already encouraging €500 million in blockchain development spending in the next three years. It is their hope that France will end up becoming a “blockchain nation” with talented developers and a strong ecosystem.
However, a “significant investment” is necessary to increase the blockchain startup productivity. Kalfon added that France has found it easy to keep themselves at “the forefront of innovation” before now, but keeping the startups scaled to the shareholders needs has been difficult.
Crypto mining is also making great strides in the country as government officials encourage it to be considered an electro-intensive activity.
Private players have the most to gain in the sector, though reducing electricity rates would likely promote more crypto mining. By offering these lower rates, France would be able to attract blockchain companies to move, especially as the UK is removed from the EU. With the upcoming Parish Blockchain Week Summit coming up, this event could be the perfect opportunity to show this option off.
When 2018 started as a bull market, every area saw major enthusiasm, though there were multiple irrational factors as well. Everyone seemed to think that blockchain and cryptocurrency would have an instantly revolutionary effect on the world, which just could not happen.
These technologies have evolved substantially though, and Kalfon says that they are now in a “cooling down” period, much in the same way that the internet development period of 2001 to 2004 relaxed.
With this maturation, breaking in to other economies and industries may be just what blockchain needs.