News update on stablecoin Libra
PayPal representatives are remain cautious about the stablecoin Libra, according to a Sept. 14 report from AFP. Gabrielle Rabinovitch, PayPal investor relations vice president emphasized that the firm’s membership of the Libra Association represents a “non-binding commitment,” nothing that:
“Obviously, I think there’s a lot of work to happen before we get to that point where it [Libra] becomes something more than just a very exciting idea.”
The Libra Association is an independent organization to govern the Libra network. Its founders are PayPal, Visa, Mastercard, Uber and spotify. If regulators and governments continue to misunderstanding about Social Media’s digital currency, Rabinovitch emphasized that the goals of Libra align with those of PayPal.
She defined these as “serving the underserved” and “democratizing access to capital. So we very much believe in the potential of Libra,” she said.
There is huge pushback since Facebook showed plans for Libra but Bertrand Perez, the director of the Libra Association claimed that the Association is committed to clearing all obstacles and that Libra should launch by the second half of 2020. French finance Minister Bruno Le Maire who declared that France would attempt to block the development of Libra on European soil.
After France, German parlimentarians have also said they are against Libra in the European Union and have echoed the French minister’s proposal challenge the Libra with Government-backed public digital currency.
Today, officials from the European Central Bank and 25 global central banks are set to meet with Libra’s founders to assess the financial stability risks of the project. On Sept. 16, Libra representatives will meet with the committee on Payments and Market Infrastructure (CPMI), a part of the Bank of International Settlements (BIS) in Switzerland.
The CPMI, a BIS international standard setter and a member of the Financial Stability Board, consists of 28 member banks, consist of the Bank of England, Deutsche Bundes bank and the Federal Reserve Bank of New York. The event will be the first major encounter between Libra’s founders and global policymakers since Facebook revealed its plans for the stablecoin project.
Benoit Coeure, an ECB executive who will manage the meeting in Basel, recently said that the bar of regulatory approval for operating Libra in the European Union will be very high. So it is time for the ECB started to work on its own digital currency project plan before the launch of Libra.