Global Banking Experts Convene to Discuss Need for Crypto Regulation

• Global banking experts convened at the World Economic Forum (WEF) to discuss the need for global crypto regulation, including stablecoins and unbacked crypto assets.
• The panel agreed there must be at least some kind of base regulation for these assets, and bank-equivalent regulation for blockchain applications.
• The governor of the Central Bank of France, François Villeroy de Galhau, pushed for the alliance of central banks and private banking institutions to promote innovation, including the adoption of CBDCs.

At the World Economic Forum’s (WEF) Davos 2023 meeting, a panel of global banking experts discussed the need for global crypto regulation, including stablecoins and unbacked crypto assets. The panel, titled „Banking in the Eye of the Storm,“ was convened to examine the cryptocurrency market after the events that unfolded during 2022, including the fall of cryptocurrency exchange FTX.

The panel agreed there must be at least some kind of base regulation for these assets and bank-equivalent regulation for blockchain applications that are seeking to offer products similar to what traditional banking offers. François Villeroy de Galhau, the Governor of the Central Bank of France, explained that regulation for crypto markets was key for controlling the possible damage these might bring to investors in the future. Villeroy de Galhau stated, “The question is not whether we have to regulate or not…for sure we have to regulate. Some even say it’s not a question of regulating, is a question of prohibiting.”

Villeroy de Galhau pushed for the alliance of central banks and private banking institutions to promote innovation, including the adoption of CBDCs (central bank digital currencies). He also expects the implementation of the finalized Basel Committee rules in all jurisdictions, which were approved in December and offer directives for the exposure of banks to cryptocurrency assets.

The panel also discussed the need for more clear regulations for cryptocurrencies. The panelists agreed that global regulations needed to be in place to protect investors and ensure the security of the market. They also discussed the need for consumer protection, as well as the need for greater transparency and accountability from crypto exchanges.

The panelists also discussed the need for more collaboration between central banks and private banking institutions, with the goal of promoting innovation and the adoption of CBDCs. They agreed that this could help create more trust and confidence in the crypto market and make it more secure.

Overall, the panelists agreed that global crypto regulation was necessary to ensure the safety of the crypto market and protect investors. They also agreed that more collaboration between central banks and private banking institutions was needed to promote innovation and the adoption of CBDCs. The panelists also agreed that more clear regulations were needed to ensure consumer protection and greater transparency and accountability from crypto exchanges.