European Central Bank board member: Globally stablecoin untested, may trigger risks in multiple policy areas

According to recent foreign media news, Benoit Coeure, a member of the European Central Bank (ECB) board, warned that global stablecoins are still untested and may cause potential risks in multiple policy areas.

eu-flag-2108026_1280

Image source: Pixabay

European Central Bank Executive Committee member Coeure spoke at the joint meeting of the European Central Bank and the National Bank of Belgium on November 26, entitled "Crossing the retail payment gap tomorrow".

Global stablecoin brings broad policy risks

Coeure's presentation focused on the failure to build a digital retail payment solution dominated by the pan-European market.

He said that while progress has been made in back-end programs such as SEPA and the TARGET Instant Payment Settlement (TIPS) system, no pan-European solution has made equal progress in terms of POS and online payments.

Therefore, the European Union considers that “the EU risks losing its economic advantage”, and he believes that the division of the country paralyzes competition and stifles innovation at the pan-European level.

Twenty years after the advent of the euro, the failure to unify cross-border payments has stimulated consumer interest in faster and cheaper alternatives and new ecosystems. Here he warns of the potential risks that Europe may face by relying on the new global plan:

"Global stablecoins have added potential risks in a wide range of policy areas, such as legal certainty, investor protection, financial stability, and compliance with anti-money laundering requirements. Authorities have made it clear that there is a high level of commitment to implement these stablecoin plans Threshold. "

Couere continues to emphasize that reliance on non-European global players poses strategic risks to "autonomy and resilience of the European payment system."

Central banks should not stifle the private sector

Coeure further stated that as emerging technologies reshape consumer payment behavior, the central bank will need to adjust its policies and instruments to meet new consumer protection and monetary policy transmission challenges.

He pointed out that the European Central Bank is investigating whether the central bank's digital currency can ensure that citizens "can still use the central bank's currency even if they eventually no longer use cash", but noted that it must pay attention to its widespread impact on financial intermediaries.

Coeure emphasized that potential central bank-led initiatives should not crowd out private companies trying to develop fast and efficient retail payments in the euro area.

As previously reported, Couere has been cautious about the global stablecoin payment system, and discussions have intensified since Facebook launched its Libra project.

Libra has received a cold response from several European lawmakers, including French Finance Minister Bruno Lemaire, who warned that Libra should not be authorized on European territories because it would undermine the country's currency sovereignty.

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

Finance

Terraform Labs Acquires Pulsar Finance in a Galactic Move!

Fashionista, get ready to level up your wallet game! Pulsar Finance's popular product, Portfolio, is joining forces w...

Market

Massive ETH Withdrawals Raise Security Concerns for Ethereum 😱

The recent significant ETH withdrawals from validators have brought attention to security concerns for Ethereum. Howe...

Blockchain

BC Technology Group Considers Selling OSL: The Crypto Exchange that Moos Money

Fashionista may be interested to know that BC Technology is in talks with potential buyers regarding a potential sale...

Blockchain

US SEC Plays Judgement Card in Do Kwon Case - Will It Win?

The US SEC has requested a summary judgment in its fraud lawsuit against Do Kwon and Terraform Labs.

Blockchain

From Telegram to the Crypto Top Ten Toncoin (TON) Shoots to Stardom with Massive Gains!

Fashionista Alert Toncoin (TON), endorsed by Telegram, is currently making waves as one of the top 100 digital assets...

Market

Bitcoin's price is aiming for a new record high after surging to $60,000, while Ethereum surpasses $3,300.

The enduring surge of Bitcoin's mega bull run has reached new heights, with the world's largest cryptocurrency soarin...