The governor of the Bank of France has said that the country's central bank is closely watching the development of stablecoins, Bloomberg reported yesterday.
According to the publication, the bank is "watching with great interest" the networks that allow their users to exchange stablecoins for securities, goods and other services. However, he highlighted stablecoins are different from standard cryptos such as Bitcoin, since the former are more promising and are not used for speculative purposes.
The governor of the bank criticized Bitcoin in the past, stating for instance at a conference held in China in 2017 "that Bitcoin is neither a currency nor a crypto, but a speculative asset whose value and extreme volatility have no economic basis."
Why it is important
- Stablecoins are designed in a way that their value is always directly linked to some asset, such as gold, or is stabilized by some algorithm.
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