ECB Official Insists On Libra Satisfying Regulators for Launch

By Prashant Jha

Speaking to a Reuters representative at the G7 Summit held at Chantilly, France, Benoit Coeure, who serves as a member on the board of the European Central Bank, commented that Facebook’s native crypto project Libra cannot possibly launch unless the backers can adequately satisfy the regulatory authorities across the world about their proposed crypto coin.

Coeure said that, in order for the stablecoin to be launched in various countries, it should be proven to be adequately safe for users.

“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.”

Coeure also said that the ability of Libra to guarantee the complete protection of privacy and ownership rights of users would require a great deal of deliberations, negotiations and long, time-consuming discussions among regulators.

On that note, he stated:

“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.”

In the earlier part of July itself, Coeure had urged global regulators to act soon with regard to Libra. The official had commented on the irresponsibility inherent in any decision to introduce Libra on a large scale without implementing adequate regulations and safeguards in place.

Coeure said that:

“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.”

Clearly, most regulators around the world are yet to warm up to the idea of Libra crypto, especially considering the concerns surrounding its transparency, and privacy issues.