Cryptos are praised for the benefits they could bring to the efficiency of the global monetary and financial system. This is not the case for central bank digital currencies (CBDCs) so often presented as alternatives despite the risks they present. However, many central banks see these digital currencies as the archetype of a new global monetary system.
Cryptos and CBDC, essential components of a global monetary system?
With its technical limitations, many analysts consider the emergence of a new international monetary system necessary. For some, cryptos could effectively take on this role.
In this regard, bitcoin (BTC), the flagship crypto, is even envisaged as the monetary system of the 21e century. And for good reason, the asset seems to be shaking off the turbulence of the global economic context. In any case, he always finds a way to recover from these falls.
This leads some experts to say that cryptos could be relevant in terms of a store of value. Which would justify their deployment as a global monetary device.
For the moment, we are very far from it. What we seem closest to is seeing CBDCs play this role instead of cryptos. As a reminder, these digital assets are not considered cryptos. Even if it is possible that their emission is done from a blockchain, as is the case for cryptos.
The Banque de France sees CBDCs establishing themselves as a global monetary system
Recently, the Banque de France reiterated its position regarding the use of a CBDC as a global monetary system. Denis Beau, the first deputy governor of this institution, clearly defended this idea during a recent media outing.
The official particularly highlighted the role of CBDCs as a catalyst for the improvement of international payment systems. This, by suggesting the implementation of these improvements upstream of the implementation of CBDCs. Cryptos are therefore relegated to the background.
Furthermore, Denis Beau recalled the need, according to him, for a strengthening of the partnership between the public sector and the private sector. Which collaboration would be instrumental in exploiting the full potential of blockchain technology, while mitigating the risks associated with it.
The Banque de France’s stance on CBDCs reflects a broader trend among the world’s central banks. Increasingly, these institutions tend to consider that these digital currencies are capable of opening a new era of international monetary cooperation and efficiency. This, to the great dismay of those who see them as thinly veiled instruments of mass enslavement and of those who place their hopes in cryptos.
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