The banks have to find another transfer system as an alternative to the Libra crypto project by Facebook, according to Jens Weidmann who is the President Of Bundesbank and the member of the Governing Council so let’s find out more in the coming altcoin news.
The European banks have to explore the tools for faster and cheaper transactions but have to be careful about avoiding Libra and the crypto technologies from the private sector. Weidmann, however, doesn’t mean the same as the ECB President Christine Lagarde and said he doesn’t expect the banks to jump and offer a crypto asset of their own:
“I’m not in favor of always immediately calling on the state. In a market economy, it’s up to companies to develop products that meet customer demands.”
Weidmann also stated that he is not opposed to exploring digital assets and warned against rushing very fast without exploring the consequences. He added that the currencies and other mechanisms should be open to audits in order to prevent money laundering. The ECB saw the increase of crypto usage in the past decade while it was battling the challenges of the European economy. Lagarde however, stated that the central banks should look into stablecoins as a way to always be one step ahead of the curve and Facebook’s Libra was triggering for many in ways that Bitcoin has never triggered anyone.
Libra based its value on a projected basket of fiat currencies and caught the eye of the regulators as a corporate attempt to create money in circulation. The major user base of Facebook has sparked many fears of the rise of an informal economy. So far, the launch of Libra is uncertain. Some of the commercial banks have also been vary of the crypto assets and only did preliminary research. So far, neither protocol nor network has managed to take a small fraction of the everyday bank transactions. At the same time, the Eurozone is one of the best environments for crypto trading and coin transfers. Despite the harsh regulations, the EU organizations always find a way to comply. In just a few days, the EU will bring even stricter regulations which are a move expected to require more action from the currency service providers in the countries.
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