While bitcoin exceeded $90,000 this Wednesday, the Bank of France can no longer deny its existence.
This is the question that resurfaces in every bull market (“bull market”) of bitcoin. “Should you buy bitcoin?” Nicolas Demorand asked the governor of the Bank of France, François Villeroy de Galhau, this Wednesday, November 13. “It’s a risky asset, that doesn’t mean you can’t invest in bitcoin, that’s part of freedom, but the advice is to reserve it for informed investors,” replied the latter .
As a reminder, bitcoin has been on the rise since the election of Donald Trump. After having exceeded its historic peak on November 6 by reaching $75,000, then $80,000 this Sunday, the queen of cryptocurrencies exceeded $90,000 this Wednesday.
In this context of euphoria, the Bank of France's position regarding bitcoin has changed significantly. If bitcoin remains a risky asset (given its bullish and bearish cycles since its origins), it is no longer denied by the authority.
“Bitcoin is in no way a currency”
“There should be no ambiguity: bitcoin is in no way a currency, or even a cryptocurrency,” declared the governor of the Bank of France in 2017. “It is a speculative asset. value and its high volatility do not correspond to any economic underlying and are no one's responsibility”, he explained during the rise of bitcoin in 2017.
A speech which had gained legitimacy in the face of the fall of bitcoin in 2022, in the wake of the collapse of the former crypto giant FTX. Despite recent comments from the governor of the Bank of France, the authority remains cautious on the subject, aligning itself with the position of the European Central Bank (ECB) which wants to launch its own digital euro.
At the same time, some central banks believe in the potential of bitcoin. This is the case in El Salvador, which adopted bitcoin as legal tender in September 2021 and whose central bank has now been buying it for several years. This could soon be the case in the United States, Donald Trump having mentioned the establishment of a strategic national reserve of bitcoins.
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