ECB Executive Board member: Libra poses a threat to European monetary policy and weakens central bank control

According to recent media reports, the European Central Bank (ECB) Executive Committee member Yves Mersch warned that Facebook's Libra poses a threat to European monetary policy and cryptocurrency consumers.

Frankfurt-2251537_1280

Image source:

According to Reuters, Mersch said on Monday:

"(Libra) may weaken the ECB's control over the euro, weaken the monetary policy transmission mechanism and weaken the international role of the single currency by affecting the liquidity of banks in the euro zone."

Mersch said that the central nature of Libra is also "extreme" concerns. Libra plans to use it as a stable currency linked to a basket of legal tenders and government bonds, and is managed by a dedicated Libra Association. He stressed that this currency will be accountable to stakeholders, triggering trust issues, and will not be supported by a central bank.

He further stated that Libra was launched by Facebook, a company that had previously “had to explain in front of US and EU legislators the threat they pose to our democracy by processing personal data on social media platforms.”

Mersch called on EU regulators to include Libra in their regulation and added that international cooperation is needed to address the risks that this cryptocurrency project may pose.

Finally, he called on Europeans not to give up the security and reliability of "ripe payment solutions and channels, and instead support Facebook's tempting but dangerous and vigilant promise."

Mersch is the latest representative of the European Central Bank to dissatisfaction with Libra's threat to the traditional monetary system. In early July, ECB Executive Board member Benoit Coeure said that Facebook's cryptocurrency "has sounded a good alarm for regulators and the public sector."

“It is impossible to develop them in a regulatory vacuum of financial services activities because it is too dangerous. We must act faster than we can do so far.”

Clay said so at the time.

Also in the European Union, it is reported that Facebook has been investigated by the European Commission for antitrust issues in the Libra project.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

The wave of "absolute deflation" of platform currency is coming. How should the exchange make a choice?

This article Source: Odaily Daily Planet , author: the the Platform currency refers to tokens issued by digital asset...

Market

Jump Trading's Crypto Waterloo: Forced to Exit US Crypto Trading Market, Facing Terra Class Action Lawsuit

For Jump Trading, the traditional high-frequency trading giant in the encryption circle, the past year has undoubtedl...

Blockchain

Hong Kong Cryptocurrency New Policy's One-Year Anniversary A Year of Major Leaps and Key Milestone Review

Over the past year, Hong Kong has made great progress and shown strategic development in virtual asset policies. Sinc...

Blockchain

Encrypted exchange: a combination of Nasdaq and investment bank

After the big bull market in 2017, cryptocurrency exchanges have sprung up on the line, according to incomplete stati...

Blockchain

Exchanges are temporarily withdrawing cash, data is garbled, or the Amazon server failure in Tokyo

According to Yahoo Japan, the Amazon Web service failed at around 13:00 on August 23, 2019. The service that failed w...

Blockchain

Futures Exchange Industry 2019 Phase II Research Report

Summary of points: 1. From January to July 2019, the volume of digital passbook futures increased significantly. The ...