The Bank of France bets on stablecoins
- The governor of the Bank of France says stablecoins are more interesting than Bitcoins.
- This position goes against the recent comments of Mario Draghi.
Francois Villeroy de Galhau, the governor of the Bank of France and a member of a governing council of the ECB, believes that stablecoins have more potential than Bitcoins, Bloomberg reports.
"These are quite different from speculative assets like bitcoins, and more promising," he said while speaking in Paris.
Villeroy also added that the Bank of France was interested in the initiatives of the private sector focused on creating stablecoins that could be used in transactions with 'tokenized' securities or goods and services.
The Governor of the Bank of France believes that stablecoins pegged to the assets like the US Dollar have a role in the financial system.
Meanwhile, the President of the European Central Bank Mario Draghi recently criticized cryptocurrencies saying that they had nothing to do with real money.
"Bitcoins or anything like that are not really currencies; they are assets. A euro is a euro – today, tomorrow, in a month, it's always a euro. And the ECB is behind the euro. Who is behind the cryptocurrencies? So they are very, very risky assets, the value of which oscillates – as you've seen – wildly," he said.
It is worth noting that many traditional financial institutions including JPMorgan Chase & Co explore the opportunities of the innovation and consider developing their own stablecoins and blockchain-based solutions.
Author
Tanya Abrosimova
Independent Analyst
