Benoit Coeure, board member of the European Central Bank (ECB), in a recent interview with Reuters expressed an opinion according to which, stablecoins are giving rise to a number of serious risks.
Coeure claims that due to the lack of testing, stablecoins are not safe in terms of public policy priorities. The bar for regulatory approval will be high, says the ECB added.
"Stablecoins are largely untested, especially on the scale required to run a global payment system. They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high," Coeure said.
Previously iHodl reported that the Government of the French Republic warned Facebook's representatives that it will block any development of the Libra stablecoin in the current conditions in Europe.
In the meantime, ECB representatives and 25 other central banks will meet with Libra founders today to evaluate how Facebook's stablecoin could be a threat to financial stability.
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