Benoît Cœuré comments on Libra concerns in Berlin

Posted 26 September, 2019

The European officials have expressed new concerns regarding the announced cryptocurrency project Libra. This time, the statement was made by Benoît Cœuré, Chair of the CPMI and Member of the Executive Board of the ECB during the speech on digital currencies in Berlin.

The released text of the message reads that the ECB member expects demand for stable coins to be on the rise next years which will be mainly driven by the interest of customers in fast and cheap cross-border money transfers.

It was noted that the announcement of Facebook's Libra was actually waked up the officials and central banks. In particular, Cœuré pointed out that the authorities must beat back these challenges. Despite all the critics, he agreed that stable coins can bring to the market solutions for a number of problems that are observed in the global payment markets. 

As the available data shows, more than a billion of people in the world "remain outside the payments system, with no access to basic services, " and low access to financial services affects the market. With a huge user base of Facebook, the Libra can reach a global scale.

 However, he also mentioned the risks of stable coins:

"These initiatives raise formidable challenges across a broad range of policy domains. Of particular concern are the risks related to anti-money laundering and countering the financing of terrorism, as well as consumer and data protection, cyber resilience, fair competition and tax compliance."

 Benoît Cœuré noted that the authorities will eventually have to develop new legal uniform means to regulate such projects in different countries.
It should be also mentioned that the head of Facebook Mark Zukerberg stated in the recent interview that the company is open for cooperation with authorities. However, he refused to comment on the date of the Libra launch.

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