Member of the Executive Council of the European Central Bank (ECB), Yves Mersch, expressed the view that the Libra project from Facebook poses a threat to both monetary policy in the EU and consumers of digital currency. It is reported by Reuters .
“Libra is able to weaken the ECB’s control over the euro, worsen the transmission mechanism of monetary policy , affecting the liquidity of banks in the eurozone, and also undermine the role of the single currency at the global level,” Mersh said.
According to the official, the “centralized nature of Libra”, which is positioned as a stablecoin tied to a basket of fiat currencies and government bonds, managed by a special association, is also of extreme concern.
Mersh also stressed that the project will be accountable to its shareholders, and not to the central bank. Such an approach, the official believes, reduces confidence in the new means of payment.
He added that Libra is being created by the same company that had to explain to the US and EU lawmakers “for threats to democracies arising from the processing of personal data through their social network platform”.
Mersh called on EU regulators to take Libra under control, stressing that international cooperation is needed to counter the potential risks of the project.
Finally, he called on Europeans not to give up "the security and reliability of established payment solutions and systems in favor of the enticing but treacherous promises of Facebook, reminiscent of a siren howl."
Recall, in July, the ECB representative Benoit Cure said that projects like Libra need serious oversight, not a regulatory vacuum.
Subscribe to BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.
BlockchainJournal.news
BlockchainJournal.news
