A member of the European Central Bank(ECB) and Governor of Banque de France, Francois Villeroy de Galhau, thinks that Authorities should not abandon plans to regulate the industry despite the diminishing interest in cryptocurrencies due to the market crash.
Francois Villeroy de Galhau recently stated that the cryptocurrency industry should be comprehensively regulated.
He outlined the present market decline in addition to the reluctance of numerous investors to prefer not to delve into the asset class for now. He, however, believes this should not cause global regulators to withdraw intentions to enforce rules on the space.
Villeroy advised the watchdogs to be extra careful with the regulation and stated that an inappropriate regulatory model could hinder the financial system, meaning that watchdogs should be extra cautious when developing it:
In addition, he said that they should avoid diverging or contradictory regulations.
The President of the European Central Bank, Christine Lagarde, also noted that people’s desire to use digital payments has increased in the past few years, so the monetary institution should attend to that demand.
The ECB predominantly focuses on issuing a digital form of the euro instead of backing up the advancement of bitcoin and alternative coins.