According to reports, Bank of France Governor François Villeroy de Galhau stated that recent crypto market volatility has served as a “wake-up call” for global regulators.
The Group of Seven (G7) central bank governors and finance ministers are allegedly planning to discuss cryptocurrency legislation.
François Villeroy de Galhau, Governor of the Bank of France, stated that representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom will likely speak on issues related to a regulatory framework for cryptocurrencies at a meeting beginning on Wednesday in the German cities of Bonn and Königswinter. Villeroy reportedly stated that recent crypto market volatility — most likely referring to some stablecoins decoupling from the US dollar and major token values falling — was a “wake-up call” for global authorities.
“Europe paved the way with MiCA,” said Villeroy at an emerging markets conference in Paris, referring to the European Parliament’s legislation aimed at forming a regulatory framework on crypto. “We will probably […] discuss these issues among many others at the G7 meeting in Germany this week.”
In an address to the Emerging Markets Forum in Paris on Tuesday, the governor of the Bank of France added:
“Crypto assets could disrupt the international financial system if they are not regulated, overseen and interoperable in a consistent and appropriate manner across jurisdictions.”
Finance ministers and central bank governors will meet in Germany from May 18–20 to discuss policies related to member nations’ recovery and financial stability in the aftermath of the COVID-19 pandemic, “shaping the upcoming transformation processes in the context of digitalization and climate neutrality,” and business policy at the International Monetary Fund, according to the G7 website. The group produced recommendations for the probable implementation of central bank digital currencies in 2021, and it was reportedly cautioned that certain stablecoins could endanger the global financial system in 2019.
Villeroy has previously encouraged EU officials to create a legislative framework in light of cryptocurrency’s rising role in regional markets, claiming that they only had “one or two years” to act. Prior to his election victory in France, Emmanuel Macron stated that he backed the European Parliament’s recent initiatives to regulate cryptocurrency, including MiCA, and that any regulations should not stifle innovation.