France Creates “Digital Currencies Mission”

The new mission will be responsible for proposing guidelines on the evolution of regulations and to better control development
16 January 2018   251

The Minister of the Economy Bruno Le Maire announced on Monday that the country is creating a “digital currencies mission” and a working group led by Jean-Pierre Landau, the former BOF deputy governor, that will study digital currencies while also proposing regulatory standards.

We want a stable economy: we reject the risks of speculation and the possible financial diversions linked to bitcoin. I asked the Argentine G20 members to take up this issue and I have now entrusted Jean-Pierre Landau, the former deputy governor of the Banque de France, to complete a mission concerning cryptocurrencies.

 

Bruno Le Maire

The Minister of the Economy of France

According to the announcement, Jean-Pierre Landau’s mission will be responsible for proposing guidelines on the evolution of regulations and to better control development and prevent their use for the purpose of tax evasion, money laundering or for financing criminal activities and terrorism.

The former BOF deputy governor Landau is an opponent of cryptocurrencies. He has displayed his attitude to bitcoin publicly writing an opinion piece for the Financial Times in 2014.

The currency is at present attractive for two reasons — One is anonymity, which makes it suitable for tax evasion and money laundering — This will not last; authorities are already wising up.

 

Jean-Pierre Landau

The former deputy governor of the Banque de France

In early December we have reported that Robert Ophele, the chairman of French market regulator, called Bitcoin a “dangerous illusion” and a tool for criminals.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   137

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.