Report by MP Pierre Person on cryptocurrencies with the aim of optimizing regulation

The Deputy of the Republic in March in the 6th district of Paris has just published a comprehensive report on cryptocurrencies, this after a background work of several months.

The majority Member of Parliament, Pierre Person, through his study and report, proposed several measures to be adopted to reconcile rules and the development of new technologies related to cryptocurrencies.

The aim of this deputy is both to democratize access to information on active cryptocurrencies, but also to improve European and especially French competitiveness in a growing sector.

Identified as a “major revolution”, cryptocurrencies have a prominent place in a report that covers many points in the cryptosphere, from digital assets to stack coins, including regulation, CBDC projects around the world, “war” between currencies and between the more traditional financial sector and cryptocurrencies.

The main proposals of the majority Member of Parliament cover various aspects of digital assets, directly or indirectly related to them.

To converge on all points towards the goals of carbon neutrality, he proposes to ban the extraction of cryptocurrencies using fossil energy (carbon-based), and even allocate carbon credits to miners with incentives related to renewable energy. With regard to NFTs, he proposes to change the French intellectual property rules to cover non-fungible tokens.

Currencies at the heart of the debate

Among the main points addressed in his “summary”, which was posted on Twitter, the Deputy Director in March insists in particular on the war between currencies linked to stablecoins and the delay that the EU has assumed due to its hesitation.

“The European Union is hesitant and tries with little conviction. […] Europe’s position is more defensive than proactive if we take into account the new challenges. ”

Pierre Person in his report on digital assets

He highlights the negative aspects of the European strategy and highlights the key challenges facing stablecoins. The latter currently testifies to the overwhelming dominance of the dollar against other trusted currencies (eg GPB, Euro, etc.).

Source: Blocks

According to this chart of stablecoins compiled by The Block, the share of stablecoins supported by the US dollar is more than 99%, irreparably crushing other FIAT currencies. If we take stalbecoins into account at market value, we immediately observe that dominance is without appeal, with private companies contributing to American hegemony in the financial sector.

While Europe seeks to have the entire monopoly, especially in the issuance of virtual currencies supported by the euro, the United States does not hesitate to hand over to private initiatives that have been much more proactive than themselves to dominate the sector.

Thus, the stack coins given by Pierre Person are the two most important in terms of market value. A position that is largely dominated by the various dollar-backed stack coins: USDT, USDC, Binance USD, DAI, USDD …

The first stable currency supported by the euro is placed in 247th position of cryptocurrencies after capitalization (that is, Stasis Euro), with a capitalization of only $ 130 million against almost $ 73 billion for Tether’s USDT and $ 54 billion for the USD currency.

“As an example, stablecoins Tether and Circle contribute to US economic and monetary hegemony.”

Person Sten

In response, Pierre Person urges Europe to be more proactive and reactive and not wait too long to start battles that are already being lost in the digital world.

Source: Twitter Person Sten

Infringement of rivalry in the financial sector

The French deputy also deplores the rivalry that is creeping into the various financial sectors between the various dominant entities. To great dissatisfaction with competitiveness and technological development, the traditional financial sector (large banks, centralized institutions, governments and others, etc.) sees a weak view of the appearance of a new form of financing that has been brought to replace it or at least for to grab the bulk of the cakes.

Pierre Person also mentions the main positive points and the problems that these new services solve, whereas the more traditional services are currently unable to meet these challenges.

Source: Twitter Person Sten

While Europe seeks to develop its digital euro in the medium term and speed up regulation, in March the Deputy Minister also called on the Banque de France to do the same and not leave everything in the hands of the European Central Bank. It remains to be seen what President Emmanuel Macron will decide during his five-year term.

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