PwC's French partner: Central banks should first let private companies experiment with cryptocurrencies

Pauline Adam Kalfon, partner of the France division of PricewaterhouseCoopers (PwC), argued that the process of issuing digital currencies (in this case, cryptographic currencies) should be managed by private entities such as Facebook and JPMorgan.

PwC is already working with blockchain developers

PwC, one of the world's largest accounting and professional services firms, has been involved in various cryptography initiatives. For example, in May 2018, PwC is badociated with the developers of VeChain (VET), the leading supply chain management platform based on the blockchain. The partnership involves working with the business unit of VeChain – a technology holding company – to integrate part of VeChain's blockchain infrastructure into certain PwC activities.

Kalfon of PwC France, however, believes that central banks should not (yet) experiment with issuing their own digital currencies (CBDC). Presumably, the issuance of a CBDC could present some unforeseen risks, as cryptos are still in their infancy.

Kalfon, who previously worked as a consultant at Deloitte, which is also among the "four largest" professional services firms in the world, suggested that central banks consider looking into CBDCs – only after the cryptocurrencies been "proven". [large] companies. According to Kalfon's badessment, commercial entities need to thoroughly test cryptocurrencies before central banks start using them.

Need to transfer money at a "dizzying pace of smart contracts"

If a bank introduces its own cryptocurrency without proper research, this could have negative effects on the country's economy, Kalfon said. She added that the Banque de France, the French central financial institution (currently operating under the auspices of the European Central Bank), may not have been adequately prepared at this stage to set up its own CBDC. . Kalfon remarked:

It is clear that a European-level project would be very complex and challenging in terms of governance, requiring alignment and political consensus from all relevant stakeholders in each Member State.

In mid-February, JP Morgan Chase, the largest US bank (and the sixth in the world), announced the launch of its own cryptocurrency, called "JPM Coin". In its announcement, JP Morgan's management announced that it had developed its cryptocurrency because digital badets based on blockchains would be widely used in the near future. According to JP Morgan, he "needed a way to transfer money at the vertiginous speed of closing these smart contracts, rather than relying on old technology such as wire transfers. e ".

Blockchain, crypto markets have become "more mature"

Commenting on JPMorgan's initiative (last month), Umar Farooq, head of JPMorgan, said:

Thus, all that currently exists in the world, as it pbades in the blockchain, is the leg of payment of this transaction. The applications are frankly endless; anything that includes a large distributed book involving companies or institutions can use it.

Meanwhile, Kalfon recently said:

In 2019, the blockchain and cryptocurrency markets have become more mature and robust, and we see ambitious projects growing with the right focus and dedication that are out of the way.