ECB's Villeroy: We'll keep a close eye on Libra

Tuesday, 17. September 2019 13:19

European Central Bank board member Francois Villeroy de Galhau stated on Tuesday that Facebook's "stablecoin" Libra will be thoroughly scrutinized because of potential gaps in rules it might exploit.

Stablecoins can be backed by money deposits, short-term government securities or commodities like precious metals. Facebook’s project Libra is currently the best-known stablecoin. Villeroy said: "Stablecoins are quite different from speculative assets like Bitcoins. However, regulators will have to keep a very close eye at the global level and believe me, we will do it."

Facebook has announced that it will submit an application in Switzerland in order to become a payments services operator. Villeroy also pointed out that performing banking services without a banking licence is illegal in any country.

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