Benoit Cur, member of the European Central Bank’s Executive Board, said financial regulators must act quickly to prepare for the stable Facebook Libra coin, Bloomberg reported July 7.
Per Bloomberg, on Sunday, Coeure said in Aix-en-Provence in the south of France that accounting for new financial services and asset classes in terms of regulation is irresponsible. He concluded:
“We [financial regulators] must move faster than we could have done so far.”
According to Coeure, the development of digital assets has revealed gaps in the current financial regulation and underlines the slow pace of adoption of new technologies by banks:
“All of these projects are a pretty useful alarm for regulators and government agencies, as they encourage us to raise a number of issues and may cause us to improve our working methods.”
The ECB as a whole was wary of cryptoactive assets, and one of the bank employees predicted that the cryptocurrency in January would become “complete nonsense.” The bank also discussed the possible advantages and disadvantages of digital central bank currencies.
The reaction of Coeure is consistent with the predictions of Jeremy Aller, co-founder and CEO of Circle payment company. In an interview with Bloomberg, published earlier this week, Aller noted that he hopes that Libra will trigger the development of a national policy on digital assets.
Last week, the Financial Services Committee of the United States House of Representatives asked Facebook and its partners to stop developing the Libra stable coin. The request followed a letter from various human rights groups calling on Congress to impose a moratorium.