A high ranking officer of the European Central Bank (ECB) stated that the Libra stablecoin will not be released until global financial regulators are assured that it’s secure.
French economist Benoit Coeure recently spoke to Reuters and said that Facebook’s Libra has to be guaranteed as safe for the public before it can be rolled out.
Safe, Robust and Resilient
He said it has to be “safe, robust and resilient” from the start. Coeure also added that the Libra situation is not a learning process. It would either work or not.
A member of the Executive Board of the European Central Bank, Coeure also emphasized that ownership rights and the security of the user’s privacy would require careful consideration and intensive discussion by regulators.
He explained that any inconsistencies that regulators find would have to be discussed at length. Authorities would have to come up with resolutions and no project will be given the green light until the board receives satisfactory answers to their questions. Coeure also added that the proper regulatory framework is also essential before anything can happen.
Coeure had already requested regulators for swift action when it comes to Libra. The ECB member stated that permitting a new asset like Facebook’s stablecoin to be introduced on a massive scale without the appropriate safeguards and regulations is reckless.
Shortcomings and Gaps
He added that the swift advancement of crypto and digital assets have revealed shortcomings and gaps in the current regulatory framework and has emphasized how behind banks are in adopting and utilizing new technologies.
Coeure and his official G7 work group on stablecoins are set to study the issue before the International Monetary Fund’s annual meeting in October.