As part of expanding its digital payment business, Facebook released a digital cryptocurrency called "Libra" in June. Libra plans to officially launch next year and is expected to provide digital trading and payment services to billions of potential users. But then, many central banks, finance ministers, legislators, and many privacy protection agencies around the world have questioned Libra and expressed concern.
Today, ECB board member Mercy also said that Libra may weaken the ECB's ability to formulate monetary policy. He said: "Depending on Libra's acceptance, it will likely weaken ECB's control over the euro, undermine the monetary policy transmission mechanism by affecting the liquidity of banks in the euro zone, and undermine the international role of the single currency."
Mercy also said that like regular currency, Libra will be a highly concentrated, "extremely worrying" setting because it has no final lender (institutions responsible for meeting capital needs in the event of a crisis or liquidity shortage) )support. It is ultimately responsible to shareholders and is therefore not a repository that is trusted by the public.
Mercy said: "Libra is scheduled to be launched in the first half of 2020, and its publisher is Facebook, which must be explained in front of US and EU legislators who are dealing with the threat posed by personal data to our democracies on social media platforms. The company released."
To this end, Mercy believes that European regulators must advocate for Libra's jurisdiction and also need global cooperation to mitigate its risks. He said: "I sincerely hope that the European people will not be tempted to give up the security and stability of current payment solutions and channels, and instead support Facebook's unpredictable promises."