The March deputy of the Republic of the 6th arrondissement of Paris has just published a comprehensive report on cryptocurrencies after several months of background work.
Majority MP Pierre Person, through his research and his report, suggested several measures to be adopted to reconcile regulation and the development of new technologies related to cryptocurrencies.
The aim of this deputy is both to democratize access to information about active cryptos, but also to improve European and especially French competitiveness in a booming sector.
Identified as a “great revolution”, cryptocurrencies feature prominently in a report that covers many points of the crypto sphere, from digital assets to stablecoins, including regulations, CBDC projects around the world, “war” between currencies and those between the more traditional sector of finance and cryptocurrencies.
The MEP’s main proposals concern various aspects of digital assets, directly or indirectly related to them.
To converge on all points towards the goals of carbon neutrality, he proposes banning the mining of cryptocurrencies using fossil energy (on a carbon basis) and even grant carbon credits to miners with renewable energy incentives. With regard to NFTs, he proposes to change French intellectual property regulations to cover non-fungible tokens.
Currencies at the heart of the debate
One of the main points addressed in his “summary” on Twitter, the deputy in March insists in particular on the war between currencies pegged to stablecoins and the slowdown the European Union has suffered because of its hesitations.
“The European Union hesitates and tries with little conviction. […] Europe’s attitude is more defensive than proactive when we take into account the new challenges”
Pierre Person in his report on digital assets
He highlights the negative aspects of the European strategy and highlights the main challenges facing stablecoins. These currently testify to the dollar’s overwhelming dominance over other fiduciary currencies (eg GBP, Euro, etc.).
According to this chart on stablecoins compiled by The Block, over 99% of the stablecoin backed by the US dollar is irretrievably destroying other FIAT currencies. If we consider the stablecoins by market cap, we immediately notice that the dominance is not attractive, with private companies contributing to the US hegemony in the financial sector.
While Europe strives to gain the whole monopoly, especially in the issuance of virtual currencies backed by the euro, the United States does not hesitate to turn over to private initiatives that have been much more proactive than themselves to dominate.
Thus, the stablecoins listed by Pierre Person are the two most important in terms of market capitalization. A ranking largely dominated by the various dollar-backed stablecoins: USDT, USDC, Binance USD, DAI, USDD…
The first stable currency to be backed by the Euro ranks 247th among cryptocurrencies by capitalization (it’s the Stasis Euro), with a capitalization of just $130 million against nearly $73 billion for Tether’s USDT and 54 billion for the USD -coin.
As an example, the stablecoins Tether and Circle contribute to the economic and monetary hegemony of the United States.
In response, Pierre Person is calling on Europe to be more proactive and responsive, and not wait too long to take up the battle already lost in the digital world.
Putting aside the rivalry within the financial sector
The French MEP also deplores the rivalry that is creeping in between the different dominant entities in the different financial sectors. Indeed, much to the dismay of competitiveness and technological development, the traditional financial sector (major banks, centralized institutions, governments and others, etc.) faces a vague view of the emergence of a new form of financing, which is taking its place come or at least, to grab the bulk of the pies.
Pierre Person also mentions the main positives and the problems that are solved by these new services, while the more traditional services are currently unable to meet these challenges.
While Europe wants to develop its digital euro in the medium term and accelerate regulation, in March the deputy also called on the Banque de France to do the same and not leave everything in the hands of the European Central Bank. It remains to be seen what President Emmanuel Macron will decide during his five-year term.
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