With over 200 pages, this report aims to provide an inventory of future French and European regulations. All subjects of the ecosystem are shielded.
“Money, banks and finance: towards a new crypto era” is the title of the latest report published on Wednesday by French MP Pierre Person, a well-known expert on the ecosystem.
This time he decided to write it alone and without the mandate of the financial committee. In 2019, the latter was a spokesperson for an information mission on cryptocurrencies in the National Assembly, along with Eric Werth. He also contributed to numerous amendments to the taxation of cryptocurrencies, as well as to the regulation of this sector, as part of the negotiations on the law on the Covenant (action plan for the growth and transformation of companies, editor’s note).
But since 2019, the cryptocurrency ecosystem has changed and matured a lot. Today, 8% of the French own cryptocurrencies, and 30% plan to invest in these assets within a year. “The aim was to make a presentation and recommendations in the spirit of the first report in order to take inventory of future French and European regulations,” admits Pierre Person to BFM Crypto.
“Some players will change traditional finance”
The latter has been meeting with more than 200 French and foreign actors for over a year to measure the temperature of this ecosystem.
“I have been trying to understand the geostrategic issues caused by crypto assets and the impact of technology in the next decade. We have met many actors who have emerged in recent years and who will certainly change traditional finance,” he explains.
The report, which BFM Crypto was able to read, consists of four main parts, in particular the issues of decentralization, the new attitude towards value, monetary sovereignty, or even the issue of “tomorrow’s digital finance”. A significant part of the report is devoted to monetary issues related to cryptocurrencies.
“In my opinion, and this may seem counterintuitive, the main problem for states is not competition between private currencies and state currencies, as in the case of Libra, but competition between states and their currencies. If we take the example of Tether or Krug stablecoins, Americans are excited to be able to count on these players to extend the dollar’s hegemony. Faced with this, the Chinese, who have built their central bank’s digital currency since 2019, allow them to create a new zone of monetary and economic influence . For its part, Europe has been painfully advancing on its digital euro for two years now, but it is difficult for us to distinguish the European doctrine, for example, on issues of anonymity,” he said.
The section is also dedicated to decentralized finance and web 3 in particular, the report specifically asks how new models can be seen in light of new technologies. Thus, the latter has carefully studied many actors of the ecosystem, from NFTs (Non-Fungible Tokens) to DAOs (Decentralized Autonomous Organizations) or even oracles.
“A use that will irreparably change the world of tomorrow”
The publication of the report on Wednesday is not accidental. Until the very end, Pierre Person wanted to connect the report with the news, in particular with the news from a month ago, in the context of the storm in the cryptocurrency market.
“Even if there was an episode with Terra, instability and sometimes even discoloration, these technologies are full of applications that will irreparably change the world of tomorrow and will serve people much more than just fruitless speculation,” admits the latter.
In addition, the report is part of the context in which Europe is considering its new European rules. A final agreement on the regulation of Mica (for “crypto asset markets”, which is currently being negotiated) should be reached at the end of June. The report pays special attention to this rule.
“We are in the process of creating European texts. They will ensure homogeneity among all Member States. This is positive. However, there is still a lack of understanding of technological issues on the part of European decision makers. standards need to be seen in the light of new technologies,” explains Pierre Person.
If he expresses certain misgivings about Mica’s rules, in particular on the issue of stablecoins or, in particular, NFT supervision, the latter also has a clear opinion on the issue of mining, which MEPs shared in March last year.
“Of course, the extraction of carbon energy should be prohibited. However, it is not available in Europe. This is not the approach that has been taken. We have to stop stigmatizing technology, this is the first time that technology can’t exist because it’s too energy-consuming,” he admits.
Although the MP for Paris will not run for a new term, he hopes his report will give those who succeed him a better understanding of the ecosystem’s problems. Will its future be related to cryptocurrencies? “I will continue to help the ecosystem as a whole. This topic is deeply political and I will remain committed,” he concludes.