5 KEY TAKEAWAYS SHAPING THE BLOCKCHAIN SPACE FROM THE SOCIETE GENERALE-FORGE CONFERENCE

Hosted by Societe Generale - FORGE, in partnership with influential entities such as Adan, Bpifrance, Groupe Caisse des Dépôts, Paris Europlace, OCBF and Cube3, the conference posed a critical question: Is blockchain an evolution or a revolution in finance? 

Read on to discover 5 key takeaways offering a glimpse into the future of digital currencies and blockchain. 

 1. Europe’s Regulatory Edge: MiCA Takes Center Stage

The Markets in Crypto-Assets (MiCA) framework establishes the EU as a leader in digital asset regulation. The framework promises to streamline regulation across member states, creating a consistent environment ripe for innovation. This regulatory foresight is not just about setting rules, but paving the way for financial institutions to explore new avenues of growth. The EU's proactive stance is a clarion call for other regions to emulate, demonstrating that regulatory clarity can co-exist with innovation.

The importance of MiCA lies in its ability to provide a single set of rules for digital assets, ensuring a level playing field for all market participants. By fostering an environment conducive to innovation, MiCA enables financial institutions to explore uncharted territory in digital finance. By leading the way in regulatory innovation, the EU is setting a benchmark for global standards and encouraging other regions to follow suit.

And now with indeed this regulation we have, at least in Europe with MiCA, but also with the growing maturity of all the players, probably some kind of regulatory maturity when it comes to crypto-native players, some more, let's say, education and tech savviness from incumbents like traditional banks. We see this convergence happening and a brand-new world of financial services based on DLT and crypto emerging, growing at scale very rapidly. – Jean-Marc Stenger, CEO of Societe Generale-Forge

(Panel #1: French actors supporting the blockchain revolution – ADAN, Paris Europlace, OCBF, Bpifrance, Caisse des Dépôts)

 2. Tokenization: Breaking New Ground in Capital Markets 

Tokenisation, the buzzword of the moment, captivated attendees with its potential to democratise investment opportunities. By converting tangible and intangible assets into digital tokens, markets could see unprecedented liquidity and accessibility. Tokenisation could open doors for unlisted companies, allowing them to tap into capital markets that were previously out of reach. 

By leveraging blockchain technology, financial institutions can offer faster, more transparent and secure transactions, ultimately improving the overall efficiency of capital markets. AI and blockchain will play key roles in creating more efficient and accessible markets, setting the stage for a new era of financial participation. As these technologies continue to evolve, they are poised to revolutionise the way capital markets operate, making them more inclusive and accessible to a wider audience. 

Unified platforms should be grounded on a collaborative framework that engages both public and private stakeholders and brings together tokenized assets as well as tokenized central bank money, which is CBDC, and tokenized private settlement assets, in particular stablecoins and commercial bank money. – Emmanuelle Assouan, Director General Financial Stability and Operations at Banque de France

(Panel #2: Building new financial services – Bitpanda, Coinhouse, Boerse Stuttgart Digital, Commission européenne)

 3. Navigating the Digital Asset Maze

Scepticism and unfamiliarity are significant barriers to the adoption of digital assets, especially for institutional investors hesitant to enter the digital space. To build trust and facilitate wider adoption, digital finance solutions must align with existing regulatory frameworks and adopt familiar standards. 

Financial institutions embracing these standards will benefit from a seamless ecosystem that addresses security and compliance concerns while fostering trust among market participants. For digital assets to thrive, the industry must leverage open internet standards to create an interoperable ecosystem and develop a secure, scalable infrastructure to support growth and adoption.

Blockchain is a decentralized technology that makes finance more efficient, profitable, and transparent. It's both an economic and sovereign imperative. – Éric Roger Pierre Lombard, Minister of Economics and Finance

(Panel #3: The transformation of Finance – BNY, Franklin Templeton, London Stock Exchange, Crédit Agricole)

 4. Stablecoins: The Currency of the Future?

Stablecoins took centre stage as discussions focused on their role as a stabilising force in the volatile world of digital currencies. Dominated by US dollar-backed stablecoins, the market is ripe for expansion, with euro-backed variants waiting in the wings. However, regulatory challenges loom large. There’s still, however, need to develop robust frameworks to support the growth of stablecoins, ensuring they meet high standards of transparency and accountability. As stablecoins increasingly find applications in remittances and treasury management, their potential to revolutionise cross-border transactions is becoming more apparent.

The use of stablecoins in remittances and treasury management is a growing trend, demonstrating their practical applications in modern finance. By enabling faster and more cost-effective cross-border transactions, stablecoins are changing the way businesses and individuals manage their finances. However, in the US, there’s still need for a robust regulatory framework to support the growth of stablecoins and ensure they meet high standards of transparency and accountability, similarly with what is already in force in the EU with MiCA. As stablecoins continue to gain traction, they are poised to play a pivotal role in the future of finance.

(Panel #3: The transformation of Finance – BNY, Franklin Templeton, London Stock Exchange, Crédit Agricole)

 5. Blockchain's Revolutionary Promise

Described as both an evolutionary and revolutionary force, blockchain is reshaping the financial landscape by enabling transactions that are faster, more transparent, and inherently secure. This technology promises to enhance operational efficiency across the board, reducing fraud risk and bolstering market integrity. As blockchain technology becomes integral to financial operations, its role as a catalyst for innovation and growth is undeniable.

By leveraging the decentralized nature of blockchain, financial institutions can enhance the efficiency and security of their operations. This technology enables real-time settlement of transactions, reducing the risk of fraud and improving the overall integrity of financial markets. 

I am convinced that blockchain and crypto assets are the long-term future of capital markets and the financial industry, in the same secure and regulated manner, regulated framework as current traditional finance. This is a space where we at Société Générale will continue to invest, working with our clients, working with all of you. – Alexandre Fleury, Co-Head of Global Markets

(Panel #4: Digital Euro, Stablecoins and other forms of Digital Money – Societe Generale-Forge, Circle, JP Morgan, Coinbase, Zodia Markets, ESMA)

 [L-R: Stephanie Cabossioras, Secretary General at Societe Generale – FORGE; Alexandre Fleury, Co-Head of Global Markets at Societe Generale; Jean-Marc Stenger, CEO of Societe Generale-FORGE]