Benoit Coeure, the respectable Executive Board Member of the European Central Bank, has urged a need for a stringent supervisory framework for governing digital currencies and stablecoin projects like Facebook’s Libra, stated a report by Bloomberg on Thursday, i.e., October 17.
Mr. Benoit in an interview quoted that,
In the case of Europe, neither the Commission nor the ECB intends to make Europe a no-fly zone for stablecoins. But stablecoins will have to meet the highest regulatory standards and adhere to broader public policy goals.”
He also added that “There is certainly no judgment that stablecoins shouldn’t exist.”
Coeure is the unprecedented leader of the G7 task force constituted for stablecoins. The team is gearing up for a presentation at the annual meeting of the globally reputed organization, the International Monetary Fund, or the IMF on Thursday in Washington, D.C.
The dignitary shared with Bloomberg his views on the existence of the stablecoins in the present scenario as well in the future space. He opined that there is a high probability that the stablecoins, which serve as a virtual currency backed by a reserve asset, prosper in the future as a part of the financial niche. He said that as the nature of money will transform, “we’ve got to adapt so we can reap the benefits of technology.”
Until recently, we’ve taken a sandbox approach to FinTech regulation under which we could afford to give projects a chance and see how risks materialize. But now we have an elephant in the sandbox, so that approach doesn’t work anymore.
Since the news of its launch, which is slated for in the approaching year 2020, Libra has been under constant scrutiny from the regulators worldwide. Countries like France and Germany are concerned that the size and scale of Libra project is likely to hamper the control of the legal network over the stablecoin. The nations stated that the Libra stablecoin poses a threat to the autonomy of the EU states.