The New Era of Crypto Assets: MP Pierre Person’s Report

In the words of the French Member of Parliament Pierre Person, the report proposes 3 objectives: to take stock of the evolution of the ecosystem since 2019, to democratize its functioning and to reject the geostrategic and geopolitical challenges, and to formulate proposals to improve French competitiveness. The profound transformations to come will have an impact on monetary geopolitics, the future of sovereignty, the emergence of new forms of legal entities (DAO) and their governance, the transformation of financial markets, the banking revolution and finally the look of Web 3.0.

Crypto Assets: A Multisectoral Revolution

In the words of the report’s author, cryptoassets are a big revolution. Both a tool to free the individual from the rents of digital mega-corporations and major banks, cryptos are generating a new relationship with value.
Called “cryptocurrencies”, then “cryptoassets”, “cryptos” are protean objects that are difficult to define because their uses and functioning vary. The “cryptoactive” category is now obsolete because it is too restrictive.

From stable currencyequivalent of traditional currency in the crypto sphere, to effectstraditional tokenized or native digital financial assets, through NFTs, cryptos can be currencies, assets or even rights with no monetary value.
The monetary qualification of cryptos has been debated for too long. Some are, some are not. Bitcoin is a currency for two reasons. Its users regard it not only as a medium of exchange, but also as a medium-term safe haven.
His self-fulfilling prophecy will anchor him as digital gold. The recognition by third countries of Bitcoin as a national or foreign currency is a legal fact that France cannot ignore. † As of now, Bitcoin is closer to a currency than a simple asset Pierre Pierson writes on his Twitter account.

The blockchain: a tool at the service of sovereignty

The disintermediation associated with the decentralization of this technology would be pushed back into new forms of governance that will allow the building of completely horizontal decision-making mechanisms in the future, guaranteeing a balanced power between individuals, as opposed to traditional pyramidal structures. The battle that is unfolding is not so much a battle between private companies confronted with public power, such as the Facebook project Diem (ex-Libra), but much more a monetary war between the major spheres of influence of this world.

In this new ultra-digital world, sovereignty cannot be enforced through the standard alone. It is mainly created by economic competitiveness. For example the stable coins Tether and Circle contribute to the economic and monetary hegemony of the United States.
The United States is promoting the development of stable coins private companies based on the dollar to expand their hegemony. China is developing an MNBC that will allow it to better control its population and compete with the dollar in international trade.

A European Union hesitating about its regulatory policy

Conversely, the European Union hesitates, feels, tries without much conviction. Yet it is a key element of a European power that European players have been trying to develop since the war hit Europe.

The digital euro is essentially a response to Libra to maintain its sovereignty over private actors. However, according to the author, the subject is no longer there. Indeed, there is now competition between the major currencies of this world. Europe should therefore establish a clear strategic doctrine. The digital euro cannot just be the project of the European Central Bank (ECB), which decides on a new form of our common currency alone, all because 30 years ago we felt it was independent.

Just as the euro was the result of political will, the digital euro must above all be a democratically validated instrument. This choice is only up to the citizens and the elected representatives who represent them. To do this, they need to know how to understand the issues.

Conclusion

The future seems to be revealing itself. This is how new players appear in the financial field. These are, for example, autonomous banks, stock exchanges and decentralized lenders, which offer new services that are cheaper, faster and available to everyone, everywhere and always.

These decentralized applications come in that to compete with the traditional financial sector which, rather than seeing them as an opportunity, seeks to denounce and hinder the development of these new projects. Concluding his presentation of the report, the Member of Parliament summarizes the following: the struggle for rent against innovation.

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Sami AYADIA

Against the angelic spirit of the intercessors of the current monetary system, I am against DeFi, digital assets and the metaverse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.

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