ECB Official: Libra Will Not Launch Without Addressing Oversight Concerns

Samuel Haig

Benoit Coeure, the chairman of the G7’s international working group on stablecoins and Libra, told Reuters that “a prolonged discussion” discussion between regulators and Facebook may be needed, with money laundering and price volatility among the concerns articulated by the former French economist.

The ECB board member emphasized that Facebook’s global reach means that it must ensure safety and security for its users, stating that Libra must “be safe, robust and resilient from day one.”

“It’s not a learning process: either it works or it doesn’t,” he added.

Regulators May Consider Adjusting Existing Laws to Oversee Libra

Coeure plainly stated that regulators will not allow Libra to launch without first having their concerns addressed, stating: 

Authorities are not going to let any such projects happen before we have answers to our questions and before we have the right regulatory framework

Chief among regulator’s concerns are questions regarding whether Facebook would be able to withstand a run on its reserves. Further, authorities fear that the pseudonymous nature of Libra’s original design may facilitate money laundering or the financing of terrorism.

However, Coeure noted that the discussions between Facebook regulators may authorities consider changing existing laws in order to cover Libra. Coeure stated: “Down the road we might find that there are gaps or inconsistencies that would require a prolonged discussion by regulators on how to do it differently.”

The ECB board member indicated that his G7 working group on stablecoins will continue to explore issues pertinent to Libra until the annual meeting of the International Monetary Fund (IMF) in October, during which the matter will be passed to the Financial Stability Board of global financial regulators for further investigation.

Coeure Fears Libra May Erode Monetary Sovereignty of States

Mr. Coeure articulated that projects such as Libra may undermine states’ monetary sovereignty, emphasizing the potentially problematic nature of private companies exercising significant influence over the monetary systems of various nations.

“Market discipline is useful but I wouldn’t see it as progress to shift monetary sovereignty from governments to private multinationals,” he said.

As part of a prepared testimony for the July 16th Senate hearing into Facebook, Calibra head David Marcus stressed that Facebook would not launch its virtual currency until the company has “fully addressed” the concerns of regulators.

Crypto Market Update: Focus on BTC, ETH, BCH, BNB, XMR, and DASH

Siamak Masnavi

This article provides a quick overview of how the crypto markets have been doing—with the focus on Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Binance Coin (BNB), Monero (XMR), and Dash (DASH)—over the past 24-hour period.

Overall, September 17th is proving to be a bit of a mixed day, with 12 of the top 20 cryptocurrencies (by market cap) in the red at press time (around 06:25 UTC).

BTC-USD

BTC-USD 24 Hour Chart - 17 Sep 2019.png

The bad news is that are still waiting for the launch of Bakkt's physically-delivered daily and monthly Bitcoin futures contracts. So, Bitcoin is still trading mostly sideways, hovering around the $10,300 mark. The good news is that the launch is expected to take place in less than one week (i.e. on September 23), as was confirmed by this tweet that Bakkt sent out on September 16:

ETH-USD

ETH-USD 24 Hour Chart - 17 Sep 2019.png

The Ether (ETH) price continues its upward movement toward the $200 mark, up another 2.24% in the past 24-hour period (making it up 4.32% in the past 7-day period). What may have helped the Bitcoin price yesterday (September 16) is the announcement by crypto payment processor BitPay that in the near future it will be possible for its customers to accept Ether payments for purchases of goods and services. Also, the BitPay wallet will support Ether.

Ethereum co-founder Vitalik Buterin had this to say about the news:

"It is exciting to see BitPay leading the way in integrating Ethereum into global payment systems. This truly opens up a new world of possibilities for the Ethereum ecosystem, and together we can continue to be a leading innovator for real world use cases for cryptocurrencies.

BCH-USD

BCH-USD 24 Hour Chart - 17 Sep 2019.png

On Monday (September 16), Bitcoin.com announced that it had entered into a strategic partnership with Taiwanese smartphone manufacturer HTC, as a result of which the Bitcoin.com wallet will come preinstalled on HTC's current and upcoming blockchain phones (Exodus 1 and Exodus 1s):

BNB-USD

BNB-USD 24 Hour Chart - 17 Sep 2019.png

Although BNB is currently in the red, this may change during the next several hours once all of the six mini announcements that Binance plans to make today have come out:

The first of the six announcements that Binance CEO Changpeng Zhao (aka "CZ") referred to is the addition of support for Cosmos (ATOM) to Binance's Margin Trading platform:

XMD-USD

XMR-USD 24 Hour Chart - 17 Sep 2019.png

OKEx Korea announced on Monday (September 16) that it intends to delist all five privacy coins it is currently supporting, i.e. XMR, DASH, ZEC, ZEN, and SBTC, due to concerns that these cryptocurrencies do not allow it to implement FATF's so-called "travel rule". 10 October 2019 is the date on which transaction (i.e. trading) support ends.

DASH-USD

DASH-USD 24 Hour Chart - 17 Sep 2019.png

Since OKEx Korea's delisting announcement mentioned DASH, you would expect it to be down today, just like XMR. However, it is not, and that is very likely due to the fact that today (September 17) is the day that trading in DASH is expected to start on Coinbase Pro on/after 09:00 PST (16:00 UTC) provided that there is sufficient liquidity.

Featured Image Court: Photo via Pixabay.com