<a href="https://www.bis.org/review/r191015b.htm">Denis Beau</a>, of the Bank of France, talked about the Crypto Assets effects at the Monetary &amp; Finance Institutions Forum Meeting on 15<sup>th</sup> October 2019 in London. The connection between the payment industry and the global economy have not been clear for the last few months. The huge growth of the digital payment industry didn’t get the required attention. The various changes and new announcements shocked the lawmakers.
Denis Beau reflected the fearful situation of the CryptoCurrency effect in the money market in the meeting. Beau said we can use Cryptocurrencies as “Settlement Assets”. He also informed about Centralised Digital Currencies.  <a href="https://www.cryptoknowmics.com/crypto/apple-will-not-create-its-digital-currency-says-cook/">Centralized Digital Currencies</a> are Central Banks issued digital currencies.
<h2>Denis Beau Stated:</h2>
Today’s crypto-assets do not offer satisfactory qualities which we expect from a settlement asset. Crypto assets are to use interchangeably with commercial bank money and central bank money.
He divided CBDC into two categories – Retail CBDC and Wholesale CBDC. He focused on the significant demand for digital currency and said to use that as a motivation to use retail CBDCs. The private payment structures like Libra or Yuan (Non-Euro CBDC) may divert the supply and achieve a “Significant Market Power”. This may impose financial instability and risks.
<h2>CBDC against EURO</h2>
Denis Beau thinks a retail <a href="https://www.cryptoknowmics.com/crypto/pboc-says-theres-no-timetable-to-launch-cbdc/">CBDC</a> in the scale of the Euro is a weak option. However, we can consider a wholesale CBDC. He said, “I don’t believe anyhow that such an initiative should conceive as a means to counterbalance private initiatives such as Libra, keeping also in mind that the weaknesses the latter intends to address in cross-border payments may not be more easily handled by such CBDC.”
But they should never refrain from the thought of CBDCs by looking at the current regulatory chaos. It’s complicated to tie various payment networks together. Because it includes a big number of currencies. But with various technology and advancements of regulations, they should always make the effort to progress.
<h2>Last mention</h2>
Beau said. In particular, it would be necessary to foster the harmonization of domestic and international regulations with respect to AML/CTF, KYC. Developing support programs for countries with underdeveloped payment infrastructures could also enhance financial inclusion.

Crypto assets divert the money market movement: Denis Beau, Bank of France

Debarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.

Crypto assets divert the money market movement: Denis Beau, Bank of France

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