A high-ranking board member of the European Central Bank demanded financial regulators to act fast in light of Facebook’s stablecoin development.
According to a recent Bloomberg report, Benoit Coeure claimed that permitting the development of new asset groups and financial services while there’s a void in regulations is highly irresponsible.
The economist argued that financial regulators have to move faster than what they’ve been doing. Coeure added that the creation of digital assets have shown that there are huge gaps in today’s financial regulations. This has also emphasized how slow banks have been in adopting new technologies.
Coeure stated that all these recent developments have been a “useful wake-up call for regulators and public authorities.” He said it encourages those in his industry to raise questions and find ways to force them to improve the way they conduct business.
The European Central Bank has typically viewed crypto assets warily. One bank executive had even predicted back in January that cryptocurrency will eventually be known as a “load of nonsense.” The discussion has also been held about the likely advantages and risks of digital currencies in central banks.
Predictions Made by Jeremy Allaire
Coeure’s comments mirror the predictions made by Jeremy Allaire, the CEO of payments firm Circle. In a recent Bloomberg interview, Allaire admitted that he hoped Libra will lead to the development of federal policies on digital assets.
The buzz around Facebook’s stablecoin has been growing steadily. The social media giant had received a request from the US House of Representatives’ Committee on Financial Services about putting the development of the Libra stablecoin on-hold.