Commercial banks should work out their own transfer systems as an alternative to Facebook’s Libra, urged Jens Weidmann, President of Bundesbank and member of the Governing Council of the European Central Bank (ECB).
Euro Area Banks Should Not Rely on Facebook’s Libra
Banks in the Euro area should explore tools for faster, cheaper transfers, but also be cautious about avoiding Libra and cryptocurrency technologies from the private sector, reported Bloomberg. Weidmann also differentiated himself from the stance of ECB President Christine Lagarde, not expecting the bank to jump in and offer a crypto asset of its own.
“I’m not in favor of always immediately calling on the state” to come up with solutions, Weidmann said in a Handelsblatt interview on Thursday, January 2. “In a market economy, it’s up to companies to develop products that meet customer demands.”
Weidmann stated he is not opposed to exploring digital assets, but has warned against rushing too fast without exploring the consequences. He added all currencies and transfer mechanisms should be open to audit to prevent money laundering.
ECB’s New President Warms Up to Idea of Stablecoins
The ECB has seen the rise of cryptocurrencies in the past decade, while itself battling the challenges of a sluggish European economy. The potential for crypto assets to bring unwanted dollarization, or create a shadow economy, have worried the bank as destabilizing to its monetary policy.
Still, Lagarde has stated central banks should look into stablecoins as a way to stay ahead of the curve. For the recent stance of the ECB, Facebook’s Libra was extremely triggering, in ways that Bitcoin has never been targeted.
Libra, a stablecoin basing its value on a projected basket of fiat currencies, immediately brought the ire of regulators, as a corporate attempt to create money in circulation. The sheer size of Facebook’s user base has sparked fears of the rise of an informal economy.
So far, the actual launch of Libra is uncertain. Commercial banks have also been very wary about crypto assets, and only performed preliminary research. But so far, neither Ripple’s protocol, nor another network have managed to take even a small fraction of real everyday bank transactions.
At the same time, the Euro area is one of the most favorable environments for crypto trading, startups, and coin transfers. Despite relatively tight regulations, European organizations find ways to comply. In just a few days, the EU will bring even stricter money-laundering regulations, the AMLD5 iteration of transparency laws, a move that is expected to require more action from locally established virtual currency service providers.
What do you think about ECB’s stance on cryptocurrencies? Share your thoughts in the comments section below!
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It seems Facebook’s woes are starting to mount as the European Central Bank (ECB) revives plans to create its own digital currency in direct competition to Libra and bitcoin. Yet another Libra challenger steps up to the plate.
The European Central Bank (ECB) and a number of countries in the region have stepped up their efforts in response to Facebook’s Libra, which has revived a competing ECB project for instant payments.
Facebook is set to go through another round of extreme questioning as it goes ahead with the plans to launch its controversial cryptocurrency Libra. The tech giant will face representatives of twenty-six central banks, including the Federal Reserve and the European Central Bank (ECB, in Basel, Switzerland, on Monday.
According to news published on Bloomberg on Septemeber 2, Yves Mersch, an executive board member at the European Central Bank (ECB), stated that Facebook’s proposed Libra currency could undermine the European Central Bank’s ability to set monetary policy.
Facebook’s proposed cryptocurrency called Libra — scheduled for release in the first half of 2020 — according to European Central Bank’s board member Yves Mersch undermines ECB’s ability to set monetary policy.
News surrounding the imminent launch of Facebook’s cryptocurrency – dubbed Libra – captivated the world earlier this Summer, and although the hype surrounding the project has largely worn off, many analysts still view it as a catalyst for greater widespread adoption of crypto.
A member of the European Central Bank's executive board sounded the alarm on the "treacherous, cartel-like" Facebook Libra cryptocurrency. Yves Mersch issued a damning warning to not be fooled by Facebook's hollow promises of a decentralized ecosystem.
A representative of the European Central Bank (ECB) has slammed Facebook‘s quasi-cryptocurrency Libra, referring to its proposed ecosystem as a “siren call. ” Yves Mersch, Luxemborgian lawyer and ECB executive board member, even told attendees of the European System of Central Banks’ legal conference the Libra ecosystem will be “cartel-like.
Facebook’s Libra continues to face resistance from institutions across the globe. Yves Mersch, ECB Board Member, was the new entrant to join the list of Libra’s critics. Yves Mersch, who is a former Governor of Luxembourg Central Bank, believed that the proposed virtual asset’s launch could weaken European Bank’s ability to introduce monetary policies and […]
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Facebook’s motto has been to move fast and break things. That battle cry is about to be tested as regulators across the world are being urged to act even faster and prevent the tech firm from developing its Libra cryptocurrency in a ‘regulatory void’.
Coinspeaker Facebook’s Libra is ‘Just Too Dangerous’, Says ECB PolicymakerJust recently the European Central Bank (ECB) has yet again commented on the Facebook Libra project and now they are saying that “it's too dangerous” and regulators need to improve the way they work.
An Executive Board Member of the European Central Bank (ECB), the financial institution responsible for administering monetary policies within the Eurozone, has opined that financial watchdogs across the globe must now fast track the process of regulating bitcoin (BTC) and other blockchain-based digital assets, as more and more institutions like Facebook join the bandwagon, reportsRead MoreRead More.
In light of Facebook’s upcoming Libra coin, European Central Bank (ECB) Executive Board Member Benoit Coeure is reportedly urging financial regulators to create a viable framework for crypto projects.
Ripple CEO, Brad Garlinghouse recently while speaking at Fortune’s Brainstorm Finance Conference in New York, praised Facebook’s Libra. Earlier this week, Facebook unveiled its “stablecoin Libra” that industry experts said is not really a blockchain.
France will set up a task force for the G7 nations to investigate ‘stablecoin’ projects such as Facebook’s Libra cryptocurrency. France’s Central Bank Isn’t Entirely On-Board With Stablecoins France’s Central Bank Governor, Francois Villeroy de Galhau, made the announcement, while addressing finance industry officials.
By CCN Markets: Facebook is already under fire from regulators less than a day after officially revealing its cryptocurrency whitepaper. Based on three separate talks, it’s clear top government and bank officials from around the world are preparing to regulate Facebook Libra.
The stablecoin market cap has reached a new all-time high of $226.8 billion, up from $132 billion in January 2024. According to data from DefiLlama, $2.43 billion in stablecoins was added in the past week alone. With a market value…
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