Weidmann Says Banks in Europe Should Battle Facebook’s Libra

News / 02.01.2020

Jens Weidmann is a policymaker of the European Central Bank. He said there is no urgent need for the European Central Bank (ECB) to come up with digital currency at the moment.

Weidmann suggested a way to tackle alternatives like the stablecoin proposed by Facebook: the bank’s development of cheaper and faster systems to transfer money. He called on banks to come up with such systems.

He expressed himself during an interview with Handelsblatt on January 2, 2020. Weidmann said he does not believe in always instantly calling on the state for solutions. Firms are responsible for the development of products that satisfy customer needs in a market economy, he said.

Weidmann is the head of Bundesbank, and he has sounded a note of caution concerning private-sector digital currencies. His words are considered by European and the United States officials over Libra, a proposed digital token with the backing of various national currencies.

However, the president of ECB, Christine Lagarde, insists that central banks should look into whether it is reasonable to introduce their digital currencies.  Bank of England Governor Mark Carney also said the same. The ECB planned to begin a strategic review this month and Lagarde could include her stance on central banks’ development of their digital currencies.

Weidmann maintained the need to first consider the pros and cons of such a move. For now, any currency must be subjected to financial oversight that guards against money-laundering and the financing of terrorism, he said.

Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images. Source: Cryptopress.

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.