European Central Bank Director, Benoit Coeure, in an interview with Bloomberg, has claimed that Global financial regulators have no plans to ban Facebook’s Libra or other stablecoins. However, digital currency projects will have to meet the highest regulatory standards.
Regulators Have No Plans to Ban Libra
Libra has been at the altar of criticism by regulators and politicians since its announcement in June. Interestingly, Coeure’s comments raise a ray of hope for Libra. He said,
“There is certainly no judgment that stablecoins shouldn’t exist,”
Not only has France pledged to block Libra’s launch, but European policymakers also have always been against Libra owing to its potential to threaten monetary sovereignty.
However, Coeure’s comments highlight that Libra is here to stay.
“In the case of Europe, neither the Commission nor the ECB intends to make Europe a no-fly zone for stablecoins. But stablecoins will have to meet the highest regulatory standards and adhere to broader public policy goals,”
The regulatory issues could further push its launch date, which has been planned for the end of June 2020. Despite the fact that seven of its founding members including Visa, Mastercard and Booking Holdings left the project, Libra is marching ahead. Coeure will present the recommendations in the G7 summit on stablecoins to finance ministers from the world’s seven largest economies gathering in Washington for the International Monetary Fund’s annual meetings.
Libra Will Lead To Faster Payments
Recently, Xavier Niel, French Tycoon and the founder of Telecoms group Iliad said that the coming of project Libra is “inevitable” and it will exist like other 1000+ cryptocurrencies in the market. Neil believes that the launch of Libra will result in more direct, interpersonal and fast payments. He further added that it will eliminate the need for middlemen, impact costs and end the monopoly of banks. He reiterated that the project has a net worth of $3.9 Billion and it is highly reliable and offers guaranteed data protection.
Coeure’s comments on Libra and stablecoins spell a ray of hope for digital currency projects, but it is still too early to say if these projects will actually get a green signal from regulators around the world. Will Libra see the light of the day or will regulators bodies banish it? Let us know what you think in the comments below.