Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
PwC Franceās Pauline Adam Kalfon says central banks should stay away from crypto until it is ābattle-testedā by corporations.
Central banks should leave issuance of digital currencies to corporations such as Facebook and JPMorgan, according to a blockchain and financial partner at PwC France, Forbes reports March 22.
According to PwC Franceās Pauline Adam Kalfon, central banks should stay away from the issuance of central bank digital currencies (CBDCs) until large corporations test out the tokenization of fiat currencies themselves.
Only when cryptocurrencies are "battle-tested by corporations,ā should central banks make a move towards the crypto space, Kalfon argued, adding that it will reduce the likelihood of potentially negative consequences on the economy arising from any central bank issuing a digital currency.
Kalfon elaborated that Franceās central bank, Banque de France, may not be the best entity to launch a digital currency project, explaining that the bank will be operating under the European Central Bank (ECB). She said:
āIt is clear that a European-level project would be very complex and challenging governance-wise, requiring alignment and the political consensus of all relevant stakeholders from each Member State.ā
In mid-February, JPMorgan announced plans to launch its own crypto, JPM Coin, to increase settlement efficiency. Following the news, JPMorgan CEO Jamie Dimon stated that the companyās new cryptocurrency could have a consumer use one day.
Facebook was first rumored to develop its own crypto in December 2018, while The New York Times (NYT) released an article in late February alleging that the social media giant is developing a stablecoin that would incorporate Facebookās three fully-owned apps ā WhatsApp, Facebook Messenger, and Instagram.
In January, the Basel Committee on Banking Supervision (BCBS) reported that 70 percent of global central banks are exploring the benefits of CBDCs.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.