- 25 members forming the CPMI will meet Libra representatives
- The US will be represented
- ECB’s Benoit Coeure will chair the meeting
The creators of Libra will meet officials from the European Central bank (ECB) and 26 Central Banks including the U.S. Federal Reserve and the Bank of England. The banking officials will, on September 16, 2019, interrogate the financial stability of the Facebook-led Stablecoin project and its attendant risks.
To Answer Key Questions
A report appearing in the Financial Times (FT) publication on September 14, 2019, stated that Libra’s representatives have been invited to a meeting with the Committee on Payments and Market Infrastructure (CPMI), a part of the Bank of International Settlements (BIS) in Switzerland and whose representatives are senior officials of 28 member central banks.
According to the report, the meeting to be held in Basel, Switzerland will be chaired by Benoît Coeuré, a member of the European Central Bank’s (ECB) Executive Board. Coeuré has been reported warning that for Libra to see the light of day in the European Union (EU) “the bar for regulatory approval will be very high.” The report adds that the founders of Libra have been invited to answer key questions about their proposed Stablecoin’s scope and design “with the findings feeding into a report for G7 finance ministers in October.”
ECB Working On a Digital Currency Project
The Committee on Payments and Market Infrastructure (CPMI) CPMI sets and maintains standards for the Bank of International Settlements (BIS) besides being a member of the Financial Stability Board. The body comprises 28 member banks, including the Bank of England, Deutsche Bundesbank and the Federal Reserve Bank of New York. The forthcoming event is going to be the first major meeting between global banking policymakers and the founders of Libra since their June 18, 2019 announcement on plans to launch their Stablecoin.
The announcement by Coeuré was made during a meeting by European Union Finance Ministers in Helsinki, Finland on September 13, 2019 where he said he believed it was time for regulators to “step up our thinking on a central bank digital currency,” insinuating that possibility as an instrument for the ECB was not too far-fetched as reported by Reuters. He revealed that the ECB has been quietly working on its little-known digital currency project plan before the launch of Libra.
The meeting will happen at a time when European lawmakers have shown concern that Libra could become extremely popular in areas within the EU where citizens have a hard time making overseas payments. France’s Minister of the Economy and Finance Bruno Le Maire announced last week that his country will not allow the development of Libra in Europe since it will threaten the “monetary sovereignty” of governments.