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Bank of France Governor Admits They’re Closely Monitoring Developments in Stablecoin

The Bank of France is reportedly interested in the development of stablecoin. This was revealed by the prestigious bank’s governor, Francois Villeroy de Galhau, in a recent Bloomberg report.

Governor Villeroy reportedly admitted that the bank is keenly following the expanding networks that let members swap stablecoins for tokenized goods, services, and securities. He also emphasized the difference between stablecoins and cryptocurrency tokens and stated that the former is distinct from the latter and have more potential.

Governor Villeroy Still Not Into Bitcoin

The Bank of France’s governor is known for his criticism of bitcoin. He’s noted for stating during a 2017 conference in Beijing, China that bitcoin is neither a currency nor a cryptocurrency. Villeroy claimed that Bitcoin is a speculative asset and that its volatility and value have no economic merit. He also said that it was “nobody’s responsibility.”

Villeroy also emphasized that the Bank of France is reminding those interested in investing in bitcoin that they’re doing so at their own risk.

European Central Bank on Cryptocurrency

The governor is not alone in his sentiments. European Central Bank (ECB) president Mario Draghi recently voiced the same views. He stated that cryptocurrency is a risky asset and is not a currency. To further emphasize his point, Draghi asked who are the people behind cryptocurrencies and highlighted the fact that tokens like bitcoin have no backers.

Stablecoins are vastly different as their value is directly connected to some form of asset, like gold. An algorithm is also utilized to stabilize it.

Several stablecoins already have their values linked to fiat currencies, like TrustTokens’ offering of fiat-backed coins. These include TrueGBP (English pounds), TrueUSD (American dollars), TrueCAD (Canadian dollars) and TrueAUD (Australian dollars).

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