Stablecoins Pose Risks to Public Policy Priorities

Must Read

CubeBit has come forward to sponsor Future Blockchain Summit 2020

November-18-20 - CubeBit 2.0 has come forward to sponsor Future Blockchain Summit 2020. The event will be held at...

Bitcoin Eyeing $11800 After Intense Drop

As we saw earlier today, Bitcoin started by declining from $11349 to $11176, roughly 1.76%.

USDT Is A Game Changer For Online Poker

CoinPoker - the flagman of the industry, the biggest and the oldest pure crypto poker...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

A board member of the European Central Bank (ECB) has argued that stablecoins like Facebook’s long-awaited Libra coin pose risks to public policy priorities.

ECB board member Benoit Coeure delivered his comments on stablecoins’ regulatory issues at a meeting at the Bank of International Settlements (BIS) in Basel, Switzerland, Reuters reported on Sept. 16. Coeure specifically stated:

“Stablecoins are largely untested, especially on the scale required to run a global payment system. […] They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.”

26 global central banks and Libra

The event at the BIS hosted 26 global central banks and the team behind the Libra project to assess the financial stability risks of the project. The event was reportedly the first major encounter between Libra’s founders and global policymakers since Facebook revealed its plans for the stablecoin project on June 18.

Previously, Coeure stipulated that the Libra coin will not launch until global regulators are satisfied. He said that the proposed stablecoin must be guaranteed to be safe for users before it can launch, adding that guaranteeing the protection of user privacy and ownership rights may require significant consideration and lengthy discussion by regulators. Coeure also encouraged financial regulators to act fast to prepare for Libra’s release.

Response from the Libra team

Amid the ongoing meeting between Libra founders and the global central banks in Basel, Calibra CEO David Marcus stepped up to protect the position of the Libra Association.

Marcus argued that the Libra project does not intend to form a new currency, but rather build a “better payment network and system running on top of existing currencies” to deliver meaningful value to users over the globe. He emphasized that there will be no creation of new money, which will “strictly remain the province of sovereign nations.”

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

USDT Is A Game Changer For Online Poker

CoinPoker - the flagman of the industry, the biggest and the oldest pure crypto poker room is the first to...

DeepTradeBot: The innovation of large companies at your service

DeepTradeBot is a collection of automated trading tools developed by Deep Neuro Networks LTD, a London, England-based company dedicated to artificial intelligence and...

Flyp.me Instant Crypto Exchange Now Supports REN Token Trading

Decentralized finance is leading the way of the cryptocurrency industry, with the REN Protocol at the front. REN Protocol is...

BLOCKCHAIN OVERCOMES POSSIBILITY OF FRAUD, LACK OF TRANSPARENCY AND TRUST IN THE GAMBLING INDUSTRY

DATE: 07/08/2020 In a recent study carried out by the UK Gambling Commission reveals that the gambling industry has...