- A European Central Bank member has stated that the Bank of France is looking into stablecoins
- They are more promising than traditional cryptos, he says
- This comes after the ECB president said that cryptos are not real money
While traditional tokens such as bitcoin and ethereum dominate the market in terms of transaction volume and popularity, stablecoins are also growing and there’s more attention on them from both inside and outside of the crypto market. This is because the coins are seen as the best of both worlds; the are cryptocurrencies but also have an attachment to fiat currency, which gives investors and users certain confidence in them that they may not have in traditional cryptos.
All eyes on stablecoins
According to a May 14, 2019 report, the European Central Bank is also paying significant attention to stablecoins. This was stated by Francois Villeroy de Galhau, a European Central Bank policymaker who stated that he sees a role for stablecoins within the financial system.
According to Galhau, after the ECB President had previously stated that cryptocurrencies are not real money, the bank of France is “observing with great interest initiatives in the private sector which aim at developing networks within which ‘stable coins’ would be used in transactions involving ‘tokenized’ securities or goods and services,” also adding that stablecoins are quite different from speculation assets such as bitcoin and thus, are considered much more promising.
It is not entirely surprising as he is not the first European Central Bank member to speak ill of bitcoin as another member has previously referred to bitcoin as the evil spawn of the financial crisis. Needless to say, pure cryptos are looked at favorably in certain circles. It does seem that there is some favorability toward stablecoins from the most skeptical members of society.
Stablecoins still controversial
However, they are not without their own downsides as they have been debate over whether or not the most popular stablecoins actually backed up by the fiat currency which they claim, such as the most recent of which was tether who, after an investigation by the New York attorney general’s office, was revealed to not be fully dollar-backed as the has previously claimed.
Stablecoins do provide some sort of acceptance and entry for cryptos that might be needed for mainstream adoption. When JP Morgan announced that they will be launching their own token, it was stated to be a dollar-backed stablecoin and not a pure one, which shows that even the big corporations that are entering crypto are not quite ready to create pure cryptos just yet.