The Committee on Finance in France Says Bitcoin Cannot be disregarded by Public Authorities

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Meeting on 23rd July 2014, under the chairmanship of Mr. Philippe Marini, president, the committee on finance heard a communication by Mr. Philippe Marini and Mr. François Marc, rapporteur general. The meeting was about the concerns raised by the development of the Bitcoin and other virtual currencies in the country and how the government should see them.

In the report, it comes out that the committee realizes that Bitcoin and other similar digital currencies can no longer be disregarded by public authorities. Published today i.e. 4th August, the report on the development of digital currencies says that the development of virtual currencies, among which is the Bitcoin, is a long-term trend.

Despite Issues, the Virtual Currencies Cannot Be Ignored by the Authorities

The committee observed that Bitcoin is raising important legal and economic questions which cannot be disregarded by public authorities any longer. According to the committee, despite a number of clearly identified risks resulting from its volatility, its anonymity and its lack of legal guarantee, Bitcoin offers multiple opportunities for the future.

The report says that Bitcoin has a lot of potential in terms of being used as a payment system and, above all, as a decentralized validation protocol. It further says that in order to prevent abuses while reserving the capacity of innovation the public authorities should work on a well-balanced regulatory framework.

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The committee suggests that the public authorities should use existing legal categories seems like the most relevant solution for now, for the definition of both virtual currencies and associated services. The report analyzed the stand taken by the French government with regard to Bitcoin and considered its halfway attempt to balance.

The Steps Taken by the French Government is Quite Balanced

According to the report the steps taken by the French government are somewhere between the strictest regulations by China, Japan or Russia and the lightest regulations by countries such as the United States, Canada or Israel. However, they requested the government to follow the regulations of the level of the European or international bodies.

The committee proposed that public authorities should keep working and analyzing in the long term the development of virtual currencies and for that they should keep informing users and other stakeholders about the risks associated with virtual currencies, but also about the rights and protections they have.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com