Battling Facebook Libra in Europe is Necessary, Says Wiedmann

News / 02.01.2020

Following the comments by the European Central Bank policymaker, Jens Weidmann, the ECB has no urgent needs in the creation of a digital currency at the current moment. Based on the reports of the ECB in December 2017, “Exploring anonymity in central bank digital currencies,” a new report explained the primary functions of the Central Bank Digital Currency. 

Its research focuses on contribution motive towards the border discussions of the ECB chains. The Accenture and R3 features presented in the CBDC concept that refers to the network as the Euro chain.

Weidmann’s Comments

Weidmann supported Facebook’s stablecoin system in correspondence to the development of the ECB’s faster and cheaper money transfer systems. His suggestions target the banks in the assimilation of such systems. 

With regard to his interview with Handelsblatt conducted on 2nd January 2020, he expressed himself and elaborated on his belief of not involving an instant state of solutions. He further explained that the various firms are burdened with the responsibility of always developing products that can be fully utilized and satisfy customer needs regarding the market economy. 

Weidmann being Bundesbank’s head, clearly comments on the provision of caution in light of the digital currencies in the private-sector. European and the United States officials take many considerations towards his comments over Libra, taking into account the backing of different national currencies in light of the proposed digital token. Libra is primarily considered a digital currency permissioned blockchain, and Facebook’s, a tech firm and a large America’s social media platform, a currency network projected to be launched in 2020. 

ECB Digital Currencies

The president of the Europe Central Bank, Christine Lagarde, hopefully, believes that the ECB will be in a successful position to recognize its detailed goals concerning a digital currency in the year 2020. Her primary suggestion is founded on the bank’s need to understand effective reasons in light of introducing their digital currency. 

Mark Carney, Governor of the Bank of England, greatly supported her comments and idealism. Also, based on the strategic review of the EBC planning this month, Lagarde should include her specified stance on the development of European Central Bank digital currencies. 

Weidmann’s suggested strategy involved the assessment of both the merits and demerits of employing the use of the bank’s digital currencies. In his words, Weidmann stated that “For now, any currency must be subjected to financial oversight that guards against money-laundering and the financing of terrorism.”

Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.