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   935

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.

SEC Chairman to Speak About BTC Listing

It looks like Bitcoin listing on the tradional exchanges won't happen in the nearest future
20 September 2019   79

Chairman of the US Securities and Exchange Commission (SEC) Jay Clayton said that bitcoin needs more regulation for listing on large exchanges. It is reported by CNBC.

If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange ... they are sorely mistaken. We have to get to a place where we can be confident that trading is better regulated.

Jay Clayton

Chairman, SEC

He was talking about listing conditions for bitcoin itself, and not derivatives, such as CME futures.