Jean-Pierre Landau, a government official and academic, released a report on July the 5th on cryptocurrencies, regulations and possible ways for the French government to deal with the technology behind them. One of the comments he gives is not to regulate the technology.
It is Not Necessary to Regulate Cryptocurrencies
On the report presented by Mr. Landau, he compares the financial and the technological innovation. He even warns about the terrible effects that over regulation would have on the cryptocurrency world and market.
Indeed, he says that a direct regulation is not desirable because it will be necessary to classify, and constrict objects that are not yet identified as currencies, securities or commodities.
In the report Monsieur Landau explained:
“The danger is three-pronged: that of freezing the rapid evolution of technology in legislation, that of failing to grasp the real nature of the object we intend to regulate and that of pushing innovation towards regulatory avoidance. On the contrary, regulation should be technologically neutral, and in order to become so, address the actors and not the products themselves.”
At the same time, he makes a differentiation between financial and technological innovation, indeed he makes a very cautious tone on the matter. He explains that monetary and financial innovation should be considered with care, and that technological innovation should be encouraged and stimulated.
“In the current phase, the correct approach would be to let cryptocurrencies – and the innovations they bring – develop in the virtual real that they occupy, but in parallel we need to avoid and confine any contagion.”
Back in January, Landau became head of a governmental cryptocurrency working group in January. Unfortunately for him, he was not received positively by the community. In the past, Landau compared Bitcoin with the Tulip Mania that took place in the 17th century.
The French Finance Minister, Bruno Le Maire, has been highlighting the importance of the famous virtual currency bitcoin and the use of blockchain technology. Around the world, several institutions, governments and banks are already using cryptocurrencies and distributed ledger technology.
In the past, at UseTheBitcoin, we wrote about how different companies are using these technologies to improve services, productivity, reduce costs and offer better products to the market.