Benoit Coeure, a member of the ECB’s (European Central Bank) Board of Directors, recently stated that the Facebook Libra can only be launched if all current global regulators are satisfied.
At the recent G7 summit in France on July 18, Benoit Coeur said that guaranteeing the stability of the currency was an essential criterion before its introduction.
“You’ve got to be safe, robust and resilient from day one. It’s not a learning process: either it works or it doesn’t.”
In addition, B. Coeure underlines the importance of a guarantee on the protection of the privacy and property rights of each user. He also added that this aspect will require a thorough review by each of the regulatory bodies. He also adds:
“Down the road we might find that there are gaps or inconsistencies that would require a prolonged discussion by regulators on how to do it differently. Authorities are not going to let any such projects happen before we have answers to our questions and before we have the right regulatory framework.”
This was a request Mr. Coeure made earlier this month to the world’s regulatory authorities to act quickly on the Libra. Indeed, it seems to him that it would be very irresponsible to allow its introduction on such a large scale without having first put in place appropriate regulations and guarantees. It also adds that this rapid development of digital assets is a direct response to the gaps and inadequacies of current regulatory structures. It also highlights the banks’ slowness in adopting these new technologies.
“All these projects are a rather useful wake-up call for regulators and public authorities, as they encourage us to raise a number of questions and might make us improve the way we do things.”
We are eagerly awaiting the results of the study of the G7 team in charge of stablecoins in order to clarify this question around Libra, which seems to raise questions in all the hierarchical institutions in the different countries of the world.
To be continued.