ZURICH/LONDON (Reuters) – Facebook will try to drag cryptocurrencies into the mainstream, and the balance of digital currency in a meeting with more skepticism Monday to a ECB board member, said, for example, “stablecoins” posed a serious risk.
FILE PHOTO: Benoit Coeure, member of the board of the European Central Bank (ECB), pictured during an interview with Reuters journalists at the ECB’s headquarters in Frankfurt, Germany, on May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo
Benoit Coeure, told central bank officials from around the world, it’s a new breed of virtual currencies, were largely untested, and promised to be a tough regulatory environment, adding to the warnings of the authorities all over the world.
Facebook is scheduled to Scale, it is the most well-known of the stablecoins, cryptocurrencies are covered by the assets, as well as the traditional cash deposit for short-term government securities, gold or platinum.
The social media giant’s project, announced in June, as it expands into e-commerce has been a high-profile attempt to attract cryptocurrencies in the banking and corporate establishment, and the creators sought to undermine it.
A decade after the birth of the web, digital currencies led by bitcoin remains largely unregulated and opaque industry, provides users with near-anonymity, and is associated by many people with hacks, heists, and illegal activity.
Do stablecoins that have to be seen to be supported by the more well-known, predictable and manageable assets, and are aimed at overcoming the extreme volatility that plagues the cryptocurrencies, and that makes them impractical for trade and payments.
However, authorities around the world have poured cold water on the Scales with the charge, directed at what critics say is a potentially destabilizing effect on the global financial system and its potential for use in money laundering.
Coeure’s comments came during an event at the Bank of International Settlements (BIS) in Basel, where the Group of Seven, working group on stablecoins are meeting to discuss legal issues related to the digital currency.
“Stablecoins have been largely untested, especially on the scale that is required for the execution of a global payment system,” he said, the European Central Bank, as a member of the board of directors, who is the chair of the BIS-hosted Committee on payments and market infrastructures. “They will give rise to a number of significant risks relating to public policy priorities. The bar for approval is going to be.”
On Friday, France’s and Germany’s finance ministers said at a meeting of euro zone finance ministers, that is, the Scale, and other cryptocurrencies of the risks to consumers, financial stability and even monetary sovereignty.
The Group of Seven advanced economies, warned in July that it would not let the monitor do this until all legal issues have been resolved, saying that there was a lengthy discussion about the project in the first place, it may be required.
Stablecoins are attracted virtually no attention from politicians and regulators to get the Balance, and partly as a result of their relatively small size. The largest of the Chain, it is still only a fraction of the size of bitcoin is the largest cryptocurrency.
The Geneva-based Scale Association, and the Calibra, a Facebook-a unit of digital wallets for the Scale, users gave a presentation at the BIS event.
A set of Scales, spokesman of the event was “constructive,” adding that the union is to enter into a dialogue with the central banks and supervisory authorities in the realization of the goal of a stable and low-cost payment system.
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“We have to recognise that the blockchain is an emerging technology, and that policy-makers need to carefully consider how to use the applications in their financial system and policies,” he said.
David Marcus, Facebook’s top executive overseeing the project, send a tweet, after Coeure’s comments, that Scale was not a threat to the power of the states to control the conduct of monetary policy.
The scale is designed to be a payment network to run on top of the existing currency,” he said. “As such, there is no new money creation, which will continue to strictly the province of sovereign Nations.
Report by John Miller in Zurich, and Tom Wilson in London; Editing by Michael Shields and Pravin Char