Officials from 25 central banks around the world and from the European Central Bank (ECB) are scheduled to meet with the founders of the Libra coin to discuss the risks on financial stability it might cause. The meeting has been set for Monday, Sept.16, in Switzerland.
Committee on Payments and Market Infrastructure (CPMI).
A Financial Times report stated that representatives from Libra will meet with their counterparts from the Committee on Payments and Market Infrastructure (CPMI). The committee is connected to the Bank of International Settlements (BIS).
The CPMI is comprised of 28 banks and includes such financial stalwarts like the Federal Reserve Bank of New York, the Bank of England, and Deutsche Bundesbank. The committee is a part of the Financial Stability Board and is an international standard setter for the BIS.
The meeting between the CPMI representatives and Libra’s founders are reportedly the first major engagement between the two groups since Facebook announced its plans to develop its own stablecoin back in June.
The convention will be held in Basel and will reportedly be chaired by Benoit Coeure, an official from the ECB.
Coeure was said to have recently admitted that the standard of regulatory approval for Libra operating in the European Union (EU) is very steep.
Coeure on the Topic
According to a Reuters report, Coeure spoke after a meeting with EU finance ministers and said it was time for policymakers to “step up” their understanding regarding a central bank cryptocurrency. The French economist allegedly hinted at the possibility that such a device is headed to the ECB.
Coeure claimed that the EC already embarked on a nondescript digital currency project even before Libra was launched. The ECB executive is slated to give a report on digital currencies before the G7 finance ministers next month.
The recent meeting of EU finance ministers in Helsinki also found the French finance minister stating his belief that Europe should think about developing its own virtual currency to stand up against Libra.
France’s Finance Minister Bruno Le Maire reportedly claimed that he would raise the idea of a “EuroCoin” with his fellow ministers in October.
The BIS had previously cautioned that major companies like Amazon, Facebook, and Google offering their own financial services could result in new dangers for the banking industry.
Meanwhile, Thomas Heilmann, a member of the German parliament, recently said that his government will stop projects like Facebook’s Libra. He shared that they are not considering letting in any private stablecoins in their market.