French government official and academic, Jean-Pierre Landau, also know as “Monsieur Bitcoin”, recently released a report that argued that it was “neither desirable nor necessary” to regulate cryptocurrencies.
The report, which extends over 100 pages, claims that overzealous regulations would create a “three-pronged danger”.“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.”
He pointed out that regulation would “oblige [them] to define, classify and therefore constrict objects which are essentially fluid and still unidentified”. This comes as a surprise to many since Landau previously compared Bitcoin to the Dutch Tulip Mania.
However, he still distinguished a difference between financial and technological innovation. He said that they “must dissociate technological innovation –– which we should encourage and stimulate –– from monetary and financial innovation, which should be considered with care”. He continue to emphasize a cautious approach by saying that the “correct approach would be to let cryptocurrencies – and the innovations they bring – develop in the virtual realm that they occupy, but in parallel we need to avoid and confine any contagion.”
Innovation cannot be stopped, only slowed down
Landau recognizes the important conclusion that it is inefficient to regulate cryptocurrencies since placing unnecessary regulatory burdens on a new and evolving industry will hamper the operation and future innovation of cryptocurrencies, and thus, hamper the benefits to consumers. It is even more significant that he changed his mind from earlier statements of comparing Bitcoin to the Dutch ...