The backlash towards Libra from multiple organizations, both within and outside the cryptocurrency community is still ever-present.
However, the board members of the European Central Bank have recently tackled the topic of digital currencies, stablecoins and more interestingly Libra, with comments noting its perceived value and harm to worldwide users.
At the European Central Bank hearing, held on the 25th of September in Deutscher Bundestag, Berlin. With “Digital currencies, focusing on Libra” as the topic of discussion, Benoit Coeure a board member of the ECB made sure to note that as much as Cross-Border payments will be useful for global commercial use and immigrants who would send remittances home, the expenses imposed on users of this physical medium of money transfer are well over the roof.
On the other hand, digital currencies and electronic wallets are a much better option to the 1.7 million unregistered adults who are yet to be included in the payment method and Libra as a stable coin if and when implemented could foster this growth.
Meanwhile, there is a lingering fear of global damage that Libra as a stable coin poses and Coeure made sure to highlight anti-money laundering, tax compliance and the “countering of financing terrorism” as some of the top three risks stable coins could birth over time, thus the long term examination of stable coins by the Governors of Central banks.
According to this board member, if Libra gains global adoption which is highly possible considering the response from the general public, it could pass as a substitute for fiat currencies and lead to monetary sovereignty in certain countries.
Despite agreeing that stable coins like Libra already have a large network of existing users, which makes it one out of many digital currencies with global influence, the only requirements for consideration of approval in Europe depend solely on its framework.