ECB policy maker: Libra may challenge the dollar status and support the establishment of the international central bank digital currency

On September 18th, at the meeting on the topic of future international monetary system in Luxembourg on Tuesday, European Central Bank (ecb) policy maker Benoit Coeure said that private stable coins like Libra may challenge the global dominance of the dollar. Also expressed support for the proposal of the Bank of England Governor Mark Carney to establish the international central bank digital currency.

Coeure explained that the wave of globalization and the rapid development of online services have driven consumers' demand for cross-border, high-speed payment services, which is what Facebook Libra and other plans are trying to cater to, but they are accompanied by weaker security. And this is where the central bank can make a difference.

1400x-1

(Photo: European Central Bank Benoit Coeure)

“Under certain circumstances, if private digital currency is allowed to develop, it may challenge the hegemony of the dollar more easily and quickly than the currency issued by other sovereign countries,” said Coeure, chairman of the G7 Stabilization Working Group. “Next Naturally, the global central bank join forces to jointly study the feasibility of central bank digital currency based on common technical standards."

It is reported that last month, President Carney elaborated on his proposed international central bank digital currency proposal at the Federal Reserve meeting in Jackson Hole, Wyo., which will eventually replace the dollar's dominant position in international transactions. He said that this is better than allowing another national currency such as the renminbi to replace the US dollar.

Carney went on to say:

"In the long run, we need to change the rules of the game. When changes come, we should not let currency hegemony continue."

Coeure said that the use of international currency has been plagued, although the euro was born 20 years ago, but cross-border e-commerce in the euro zone did not take off, only one-third of European e-shoppers bought from sellers in other EU countries. commodity. The convenience and speed offered by the Facebook system may change the rules of the game. The question is whether they can provide the stability of traditional currencies, and global regulators are trying to investigate this.

It is reported that before the next International Monetary Fund (IMF) and World Bank annual meeting in mid-October, President Coeure may propose policy recommendations on the issue of stabilizing the currency.

Coeure concluded by saying:

“Libra has undoubtedly sounded the alarm for central banks, forcing them to step up their efforts to improve existing payment systems, which is a win-win situation for the global community.”

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

Opinion

Data Perspective on the South Korean Cryptocurrency Market Strong Growth of CEX and Obsession of Retail Investors with Altcoins

We will study data from centralized exchanges in Korea and explore the characteristics and trends of Korean investors.

Blockchain

Ieo, which used to be ten times easier, is there anyone else involved?

At the beginning of the new year, the coin opened the curtain of the IEO "issuing the first exchange" stage...

Opinion

Why is selling risk the good business model?

The top companies, the market makers, are the ones who sell risk. They are the giants who have stacked up their finan...

Bitcoin

Restoring the entire process of asset transfer: $6.02 million stolen from the DragonEX exchange

In the early morning of March 24th, Beijing time, the DragonEX exchange issued a notice stating that its platform dig...

Blockchain

Bloomberg: The currency stability exchange's own stable currency will be issued in "weeks to one or two months"

According to Bloomberg News, Wei Zhou, chief financial officer of Binance, the main cryptocurrency exchange, said in ...

Market

Fortune Magazine From ambitious to defensive, what twists and turns has the crypto queen Katie Haun experienced?

Cryptocurrencies may experience cyclical fluctuations, but this time the trough is much steeper than investors expect...