Libra founders meet with central banks

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Cointelegraph reports that officials from the European Central Bank (ECB) and 25 global central banks will meet with Libra to assess the financial stability risks of the project.

The Financial Times announced on 14th September that Libra representatives would meet with the Committee on Payments and Market Infrastructure (CPMI), a part of the Bank of International Settlements (BIS), in Switzerland, on 16th September.

The CPMI, a BIS international standard setter and a member of the Financial Stability Board, consists of 28 member banks, including the Bank of England, Deutsche Bundesbank and the Federal Reserve Bank of New York.

According to the FT, the event will be the first major encounter between Libra’s founders and global policymakers since Facebook announced its intention to launch a stablecoin in June.

Benoit Coeure, an ECB executive who will reportedly chair the meeting in Basel, has already made a statement saying that the European Union would set the bar very high when it comes to Libra satisfying regulations and receiving approval.

Coeure made his statement in Helsinki on 13th September at a meeting of European finance ministers. He said, that it was time for regulators to “step up our thinking on a central bank digital currency,” and hinted at the possibility of such an instrument for the ECB.

Furthermore, according to Coeure, the ECB started to work on its little-known digital currency project plan before the launch of Libra, and is reportedly expected to provide a report on virtual currencies to G7 finance ministers in October.

At the same gathering in Helsinki, French Finance Minister Bruno Le Maire stated that Europe should consider its own public digital currency to challenge Libra. Le Maire claimed that he would discuss the potential for a supposed “EuroCoin” with his counterparts on the continent next month.

The BIS has also warned that financial services provided by major companies such as Facebook, Google and Amazon could generate new risks for the banking sector.

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