This is the first major meeting between Libra founding members and policy makers since Facebook announced its plan to disrupt the global payment system.
Editor’s note: This article is from “Tencent Technology”, Review: Gold Deer, authorized to reprint.
According to foreign media reports, Facebook will accept questions from global regulators about its planned cryptocurrency Libra project. Currently, EU governments are concerned about the threat posed by this digital currency to financial stability.
A European official revealed that representatives of the Libra project will meet with representatives from 26 central banks around the world in Basel, Germany on Monday, including officials from the Federal Reserve and the Bank of England, which announced plans to subvert the global payment system from Facebook. The first important meeting between Libra’s founding members and policy makers.
The European Central Bank (ECB) President Beno t Coeuré, who will host the meeting, warned that Libra’s “regulatory approval threshold” for operations in the European Union would be very high. He made the remarks after the meeting of EU finance ministers in Helsinki. Governments expressed “strong concern” about how Libra and other digital currency technologies could undermine the stability of the financial system and undermine the authority of governments and central banks.
Core will host a meeting between Libra and the Committee on Payments and Market Infrastructure on Monday. The committee is a forum for the Bank for International Settlements (BIS).
An official said that Libra’s founding members have been invited to answer key questions about the cryptocurrency range and design, and the findings will be submitted to the G7 Finance Minister’s report in October.
Libra’s founding members welcome all negotiations with the regulator. A spokesperson for the project said: “In the nearly three months after the announcement of the intention to release the Libra network, we have prioritized contacts with regulators and policy makers around the world. We welcome this participation and deliberately designed a long Launch a runway to conduct these conversations, educate stakeholders, and incorporate their feedback into meIn our design.
Facebook’s digital currency program has caught the attention of governments and central banks. French Finance Minister Bruno Le Maire said that Libra should be prevented from operating in the EU because it could undermine the “monetary sovereignty” of governments in the absence of proper regulation. Lemer said: “Under the current conditions, we should reject Libra’s development in the EU.”
France is the rotating presidency of the G7. The G7 quickly formed a special team to review Libra and other so-called stable coins, which was also led by Corey. Another financial stability board based in Basel, the Financial Stability Board, also said it will study Facebook’s plans. The committee made recommendations to the G20, chaired by Federal Reserve Vice President Randal Quarles.
Since the Libra project was announced in June, regulators and governments have been scrambling to get more information about Libra’s range and design. The anti-monopoly department of the European Commission has sent a questionnaire to Facebook as part of a preliminary investigation to explore whether there is unfair competition in this currency and put the opponent at a disadvantage.
The EU is also in the early stages of designing a regulatory framework to regulate Libra and other stable currencies that are designed to be supported by hard assets and other sovereign currencies. Valdis Dombrovskis, vice president of financial services for the European Union, said: “The willingness to act at the EU level is strong. People are worried about the impact of cryptocurrency on financial stability. Need to fully understand These risks, the EU needs to take a unified action.”
European policymakers are particularly concerned that Libra will be popular in the European Union, where consumers still face difficulties in making cross-border payments. Corey said on Friday that the project has sounded an “alarm” for governments and central banks, and they need to work hard to develop technology that makes consumers’ payments “faster and cheaper.”
Central banks around the world also said it is possible to develop a digital currency that competes with Libra to undermine the private initiatives of technology giants such as Facebook. Bank of England Governor Mark Carney and the incoming European Central Bank President Christine Lagarde have supported central banks in launching their digital currency.
Core said that it is time for regulators to “think about launching the central bank’s digital currency.”