Libra in the Eurozone soon?

Central Banks and Governments oppose.

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Date: 17 – September – 2019

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The European Central Bank said that they are setting a very high regulatory approval bar for Libra, the cryptocurrency project of Facebook, after governments in Europe expressed their concerns about digital currencies. 

Officials of 26 central banks including the Bank of England and the US Federal Reserve are meeting with representatives of the project Libra, Benoît Coeuré, of the European Central Bank who will chair the meeting said that governments expressed “strong concerns” about the possibility of Libra and other digital currencies destabilizing the financial system and undermining the sovereignty of Central Banks and Governments. 

Libra’s representatives will have to answer questions about the scope and design of the project.

The French finance minister,  Bruno Le Maire said that “Under the current conditions, we should refuse the development of Libra in the EU.”

The European policymakers fear that Libra could become popular among the EU citizens to make cross border payments, where nowadays consumers face difficulties to do this type of monetary transactions.

Christine Lagarde, incoming president of the ECB and Mark Carney, governor of the BoE, have expressed their support of digital currencies developed by central banks.

Meanwhile, Europe Central Banks are beginning to consider the possibility of creating a digital currency “EuroCoin” to compete against digital coins of private enterprises like Libra of Facebook, the People’s Bank of China has plans already set to launch their own digital currency, some information is pointing that this could happen as soon as this November, however there is still no confirmation.

Facebook has indicated that Libra could help them expand their commercial advertising potential, among other benefits for their users such as allowing them to carry out economic operations regardless of whether they are in different countries.