On Tuesday, October 8, Valdis Dombrovskis, who is slated to stay on as vice president of the European Commission in charge of financial regulation, said that Facebook’s proposed digital currency Libra posed a systemic risk to the euro, given the size of the companies that are behind the global cryptocurrency-based payments network, according to The Wall Street Journal.
“Yes, we will need to regulate libra, to supervise it on an EU level, both from the perspective of financial stability and the protection of financial investors,” he told EU lawmakers.
“Financial stability, monetary stability, anti-money-laundering—these are just a few aspects that need to be considered,” Mr. Dombrovskis later added.
France and Germany called for Libra to be blocked in September, stating that “no private entity can claim monetary power, which is inherent to the sovereignty of nations.”
Full Content: The Wall Street Journal
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