The French economist and member of the executive board for the European Central Bank, Benoît Cœuré has sent a warning to Facebook in regards to its upcoming stablecoin, Libra.
It seems that Libra just can’t catch a break. Ever since its announcement, the social networks new venture has been ripped apart by regulators and policymakers to find out just what makes it tick and whether it should even be allowed to go live next year.
A lot of central banks have had their impact and now we have the European Central Banks thoughts on the new cryptocurrency.
Speaking to reporters, Cœuré said:
“It’s out of the question to allow them to develop in a regulatory void for their financial service activities because it’s just too dangerous.”
He went on to encourage his co-workers to “move more quickly,” and emphasised hat Libra s a wake-up call for regulators. He ended, saying that Libra could actually “make us improve the way we do things.”
Cœuré ultimately seems to be thinking in a similar way to that of other regulators have said about Libra forcing regulators to be better. The Chairman of CFTC also spoke in a similar sense towards blockchain tech in general, saying that it will help regulators in preventing a repeat of the 2008 financial crisis.
Mark Carney, The Bank of England’s Governor has stated that “We’re keeping an open mind, but not an open door” in regards to Libra.
Within the European Central bank, Cœuré is a well-respected member. In fact, he has even been called upon to lead the G7 cryptocurrency task force recently proposed by France. The task force would be responsible for creating a consistent regulatory framework for Libra and other cryptocurrencies across all G7 countries.
We’ll have to wait and see as to whether the European Bank will make some solid ground in regulating Facebook’s cryptocurrency. Nothing has been announced as of yet but who knows what the future holds.