EU Should Ignore FB Promises On Libra, - ECB's Mersch

Depending on the Libra's level of acceptance, the ECB’s control over the euro could be reduced board member of ECB believes
02 September 2019   1154

Facebook’s cryptocurrency initiative could undermine the ability of the European Central Bank to establish monetary policy in Europe, and the “treacherous promises” of the social network do not deserve trust, says ECB board member Yves Mersch.

Depending on Libra’s level of acceptance and on the referencing of the euro in its reserve basket, it could reduce the ECB’s control over the euro, impair the monetary policy transmission mechanism by affecting the liquidity position of euro area banks, and undermine the single currency’s international role.

Yves Mersch 

Board member, ECB

He also noted that the Libra model is “extremely concerning” because the digital currency will not be provided by the lender of last resort and will serve the interests of project sponsors who are not carriers of public trust.

It is scheduled for release in the first half of 2020 by the very same people who had to explain themselves in front of legislators in the United States and the European Union on the threats to our democracies resulting from their handling of personal data on their social media platform. I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favor of the beguiling but treacherous promises of Facebook’s siren call.

Yves Mersch 

Board member, ECB

Earlier, Mersch spoke with similar comments in relation to bitcoin.

French Gendarmerie to Use Tezos Blockhain

Gendarmerie Cybercrime Division (C3N) is "validating judicial expenses" with Tezos blockchain
21 November 2019   71

The French Gendarmerie Cybercrime Division (C3N) uses the Tezos blockchain. The agency launched its first smart contract in September.

According to a press release, C3N uses blockchain to control the costs incurred during investigations.

Debuting on the Tezos network, this is one of the first examples of a government entity using a smart contract for operational purposes. The new program allows C3N to acquire cryptocurrency from Europol-allocated funds in order to cover operational costs.

Nomandic Labs

The new program also allows C3N to purchase cryptocurrency with funds allocated by Europol to cover operating expenses.

The statement noted that the smart contract was specifically designed so that C3N confirms costs without the risk of disclosing operational activities and problems for ongoing investigations.