Libra won't launch until regulators are happy, says European Central Bank exec

21 Jul, 2019
by David Robb
Opinion
Libra won't launch until regulators are happy, says European Central Bank exec

A board member of the European Central Bank recently shared his thoughts on the future of Facebook's new Libra project. Benoit Coeure claimed that the stablecoin wouldn't be launched until regulators are satisified.

Coeure is the head of an international working group that is currently looking into the Libra project, and as such he has major influence over its future, deciding whether the crypto will ever hit the market. At a recent G7 event, the ECB exec told Reuters that Libra has to "be safe, robust and resilient from day one...It’s not a learning process: either it works or it doesn’t".

According to Coeure, the specific case of Libra may lead authorities to bring in new rules that will protect investors and consumers, which could hold back the eventual rollout of Facebook's new venture: "Down the road we might find that there are gaps or inconsistencies that would require a prolonged discussion by regulators on how to do it differently...Authorities are not going to let any such projects happen before we have answers to our questions and before we have the right regulatory framework."

Although he acknowledged that "the official community globally have not been fully successful in restoring trust in the financial system", which has led to "demand for alternative propositions", Coeure doesn't believe that transferring power to corporations like Facebook is the best solution. Despite what Libra's advocates have claimed about its potential to promote the financial independence of people in developing nations, he claimed that "I wouldn’t see it as progress to shift monetary sovereignty from governments to private multinationals".

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