European Central Bank board member Benoit Coeure said financial regulators must act quickly to prepare for Facebook's Libra stablecoin, reports Bloomberg July 7.
Per Bloomberg claimed Coeure Sunday in Aix-en-Provence in the South of France that it is irresponsible to allow the development of new financial services and asset classes in a regulatory environment. He concluded:
"We [financial regulators] must move faster than we have been able to do until now."
According to Coeure, the development of digital assets has revealed gaps in current financial regulations, emphasizing banks' slow rate of adoption of new technologies:
"All these projects are a pretty useful wake-up call for regulators and public authorities as they encourage us to Asking More Questions and Enabling Us to Improve the Way We Do Things. "The ECB has generally approached cryptographic permits with caution, with a bank officer predicting that the crypt will end up as a" complete nonsense "in January. The bank has also discussed possible advantages and disadvantages of the central bank's digital currencies.
Coeure's response is in line with the predictions of Jeremy Allaire, co-founder and CEO of the Circle Paying Company. In an interview with Bloomberg released earlier this week, Allaire noted that he hopes Libra will trigger the development of national digital asset policies.
Last week, the US Financial Services Supervisory Committee requested that Facebook and its partners stop the development of Libra stablecoin. The request came on the heels of a letter from various lawyer groups and urged Congress to implement a moratorium.