France’s ‘Monsieur Bitcoin’ Doesn’t Want Regulation

Jul 6, 2018 at 22:25 Update Date :Jul 6, 2018 at 22:25 UTC

Bruno Le Maire, the finance minister of France, authorised a governmental cryptocurrency regulation task force earlier this week. This force is to be headed by ‘Monsieur Bitcoin’ or ‘Mr. Bitcoin’, who is none other than Jean-Pierre Landau, former deputy governor of the Banque de France. The French daily news outlet Les Echos reported the appointment.

The force has been created to dig into the threats that Bitcoin and other cryptocurrencies pose to the economy and thereby put forward the regulatory guidelines that would pacify these risks.

In his initial report on cryptocurrency, released on July 5, he asserted that it was “neither desirable nor necessary” to regulate the technology.

In the report, which runs to over a hundred pages, Mr. Bitcoin knowingly puts forward a distinction between ‘technological’ and ‘financial’ innovation. He is seen arguing that the over-regulation of cryptocurrency would shape up a “three-pronged danger”, which comes as a surprise to many.

“Direct regulation is not desirable as it would oblige us to define, classify and therefore constrict objects which are essentially fluid and still unidentified,”

The report further continued,

“The danger is three-pronged: that of freezing the rapid evolution of technology in legislation, that of failing to grasp the real nature of the object we intend to regulate and that of pushing innovation towards regulatory avoidance. On the contrary, regulation should be technologically neutral, and in order to become so, address the actors and not the products themselves.”

Also, the report contains various such instances where technological and financial innovations are distinguished. “We must dissociate technological innovation –– which we should encourage and stimulate –– from monetary and financial innovation, which should be considered with care,” he extended:

“In the current phase, the correct approach would be to let cryptocurrencies – and the innovations they bring – develop in the virtual realm that they occupy, but in parallel, we need to avoid and confine any contagion.”

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