Global financial regulators are not planning to ban Facebook's crypto currency or other similar currencies, says ECB director Benoît Coeuré on Thursday. However, libra and other crypto coins must adhere to the "highest legal standards", he warns.
It is a strikingly positive statement about libra, which is under attack worldwide. From the outset, regulators and politicians from different countries have expressed concerns about Facebook's plans. The ECB has also been critical of the currency since its announcement in June, and France even said it would prohibit the launch of the currency.
Concerns concern, among other things, the lack of regulation if the 2.4 billion users of Instagram, Facebook and WhatsApp can start using the crypto currency in one go. In addition, privacy and money laundering risks are lurking and fears of financial stability and the undermining of regular currencies are feared.
Libra was launched in June by a partnership of 28 companies, seven of which have since retired as a result of the controversy, including PayPal, Visa and MasterCard. Facebook stated on Wednesday that the so-called Libra Association will nevertheless easily get a hundred members for the launch of the currency.
According to Facebook, this would probably take place later than June 2020 due to the discussions on regulations, for which the introduction was originally planned.
See also: Why Facebook's cryptomib libra gets so much criticism