Francois Villeroy de Galhau, the governor of the Bank of France, declared that Europe ought to make a priority out of crypto regulations in order to avoid digital assets posing a risk to its monetary sovereignty.
He has predicted that the EU only has around “one or two years” left to create a regulatory framework for crypto. Not taking any action, according to him, would lead to a “risk of an erosion of our monetary sovereignty” and even make the euro weaker.
“I must stress here the urgency: we do not have much time left, one or two years. On both [digital] currencies and payments, we in Europe need to move as quickly as possible,” declared Villeroy.
He is calling on the EU “to adopt a regulatory framework in the coming months” as a result of the increasingly important role that cryptos are playing in regional markets.
In the past, the central bank governor warned regulators against risks associated with crypto, including stablecoins and CBDCs. Half a year ago, he also mentioned that big tech companies may create “private financial infrastructures and monetary systems,” which would have an impact on the sovereignty of the EU for decades to follow.