European Central Bank’s Prediction about the Delay in Launching Libra
European Central Bank’s
Following the last-month release of Libra by the credible company Facebook, which is backed by four official currencies, numerous debates have started; on the one hand, one of the hottest issues was whether it can reach its missions or not, and on the other, there was the approach of different countries in case of accepting it as an effective cryptocurrency in the market or not.
The new controversy raised is about the European Central Bank and its point of view regarding not-enacted rules applicable about cryptocurrencies.
It has been remarked by one of board members of the European Central Bank, Benoit Coeur that Libra being launched entails the confirmation of global regulators. Their clear stance toward this cryptocurrency was manifested at the G7 summit held in France on July 18, in answering the question posed by Reuters. He pointed out being rigid and at the same time flexible in working with Libra from the beginning, since he believed there was no place for trial and error.
Their sensitivity comes from the unneglectable importance the privacy for the users should have in working with Libra; and as long as the issue of regulating it doesn’t solve, they cannot trust it. They would like to fill all likely probable gaps the users might confront in the process of adopting them in their financial affairs.
Along with it, Coeure requested a fast action from global regulators to facilitate applying this cryptocurrency, the ECB believes that including Libra in wide scales while there is not yet any enacted rule about it will be negligence.
These kinds of expressing concerns about lack of legal consistency in the field of cryptocurrencies and the digital world on the part of effective bodies like ECB will intrigue the experts to hold meetings and conferences to discuss the issue.
The reason of regulators’ procrastination in taking measure in legalizing it is the fear about it being used for money laundering and finance terrorism.