European Central Bank director Benoit Coeure said in an interview that the global financial regulators have no plans to ban Facebook’s Libra. However, these digital currencies will have to meet the highest regulatory standards.
These news provide a shed of hope for Facebook as so far the Libra currency has been widely criticised since its announcement in June, with many initial partners such as PayPal leaving the Libra project.
Many countries and European policymakers do not wish to welcome the currency with France pledging to block the launch of the coin in Europe. This is due to concerns about the impact it may have on financial stability and the potential of undermining monetary sovereignty.
Despite this, Coeure commented:
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.
Despite seven initial backers pulling out of the project, including members such as Visa and Mastercard, the existing supports plan to forge ahead with the project. The release of the digital currency’s launch date may be pushed back until June next year.