ECB’s Villeroy says “We cannot sacrifice safety” when talking about Libra

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European Central Bank policymaker Francois Villeroy de Galhau has spoken again on the potential impact of Facebook’s Libra. When speaking about the proposed stable coin he stated Libra must comply with the “highest standards for banking and financial regulation,”

When speaking about the future he also commented “We are open to innovation,” acknowledging that digital currencies could “bring many opportunities to customers and the economy.” However, he added, “We cannot sacrifice safety and confidence on behalf of innovation.”.

When talking about the hurdles that the Libra association have to jump through the French Central Banker said “I think the rule of the game is now clear, supported by all major economies, and Libra’s promoters are also clear about these rules of the game,”.

Then speaking about the long term stability of the project he said “an innovation which would not be built on the highest level of confidence will not be a long-standing one.”

“For currencies, whatever the technical support — be it a bank note, a card or digital — trust remains of the essence. We central banks guarantee this trust. This is our main responsibility.” and when talking about the positives he said the current system is “too slow and too expensive, especially for remittances.”.

 

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