The new era of cryptocurrencies: The report by MP Pierre Person

In the words of French Member of Parliament Pierre Persons, the report presents 3 objectives: to compile an inventory of the development of the ecosystem since 2019, to democratize its operation and to reject the geostrategic and geopolitical challenges, and to formulate proposals to increase French competitiveness. The profound transformations that are coming will, according to the author, have an impact on monetary geopolitics, the future of sovereignty, the emergence of new forms of legal persons (DAO) and their governance, the transformation of the financial markets, the banking revolution and finally the appearance of Web 3.0.

Cryptoactive: a multisectoral revolution

In the words of the author of the report, cryptocurrencies are a big revolution. Both a tool to free the individual from the rent of digital mega-companies and large banks, cryptocurrencies generate a new relationship to value.
Called “cryptocurrencies”, then “cryptoassets”, “cryptos” are protean objects that are difficult to define as their uses and function vary. The category “cryptoactive” is now obsolete because it is too restrictive.

From stablecoincorresponding to traditional currency in the cryptosphere, to securitiestraditionally tokenized or natural digital financial asset, through NFTs, cryptocurrencies can be currencies, assets or even rights with no monetary value.
The monetary qualification of cryptocurrencies has been discussed for too long. Some are, some are not. Bitcoin is a currency for two reasons. Its users consider it more than just a means of exchange, but also a safe haven in the medium term.
His self-fulfilling prophecy will anchor him as digital gold. Third countries’ recognition of Bitcoin as a national or foreign currency constitutes a legal fact that France cannot ignore. ” From now on, Bitcoin is closer to a currency than a simple asset “Pierre Pierson writes on his Twitter account.

Blockchain: a tool for the service of sovereignty

The disintermediation associated with the decentralization of this technology will be rejected in new forms of governance, which will make it possible to build completely horizontal decision-making mechanisms in the future, guaranteeing a balanced power between individuals as opposed to traditional pyramid structures. The battle that is being played out is less a battle between private companies facing public power, like the Facebook project, Diem (ex-Libra), but much more a monetary war between the major spheres of influence in this world.

In this new ultra-digital world, sovereignty can not only be asserted through the standard. Above all, it is created by economic competitiveness. E.g stablecoins Tether and Circle contribute to US economic and monetary hegemony.
The United States promotes the development of stablecoins private companies based on the dollar to expand their hegemony. China is developing an MNBC that will allow it to better control its population and compete with the dollar in international trade.

An EU that hesitates with its legislative policy

Conversely, the EU hesitates, gropes, tries without much conviction. Yet it is a key element of a Europe as a power that European actors have sought to develop since the war hit Europe.

The digital euro is basically a response to Libra in order to preserve its sovereignty over private actors. However, the topic is no longer there according to the author. In fact, there is now competition between the major currencies of this world. Europe should therefore establish a clear strategic doctrine. The digital euro cannot just be the project of the European Central Bank (ECB), which alone decides on a new form of our single currency, all because 30 years ago we felt that it was independent.

Just as the euro was the fruit of political will, the digital euro must, above all, be a democratically validated tool. This election belongs only to the citizens and the elected representatives who represent them. To do this, they need to know how to understand the problems.

Conclusion

The future seems to reveal itself. In the financial area, new players are thus emerging. These include, for example, independent banks, stock exchanges and decentralized loan providers that offer new services that are cheaper, faster and accessible to everyone, everywhere and all the time.

In this sense, these decentralized applications will compete with the traditional financial sector, which, instead of seeing them as an opportunity, seeks to condemn and hinder the development of these new projects. To conclude his presentation of the report, the Honorable Member summarized as follows: the fight for income against innovation.

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Sami AYADI

To the angelism of the proponents of the current monetary system, I am against DeFi, digital assets and the meta-verse. Lawyer in Luxembourg, I am interested in cryptocurrency investment funds.

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