Europe Braces For Coming Digital Storm As EU Moves To Not Allow Facebook’s Libra to Launch
With its Libra project, Facebook has opened a Pandora’s box. Now, countries all over the globe are bracing for the irresistible impact of high-profile digital stablecoins in their economies and the situation is not any different in the European Union.
Recently, the EU affirmed that it would double down on its efforts to block Facebook’s Libra launch, as it was deemed as too risky. According to a recent document emitted by Finland, the current president of the EU council, the Libra and any other kind of similar project should be prevented from operating in the region.
The critics of the project believe that it is too hard to reach any kind of conclusive decision about the project because it simply lacks clarity right now.
Daniel Daianu, the president of the fiscal council of Romania, affirmed that “parallel markets” and the end of central banks are very dangerous. He defends that these ideas are still the fallout of the 2018 financial crisis, which ruined the reputation of these institutions.
With possibly billions of users, the Libra would fracture the monetary system even more and could bring unseen dangers to the international community.
European Banks Will Have To Work Hard To Compete With Stablecoins
Now, central and commercial banks from the region will face a hard time to beat Libra and similar projects. Isabel Schnabel, an economist who will fill Germany’s slot in the Eurozone central bank soon, has affirmed that the low profitability of these banks could be risky.
According to her, the situation is very tense in banks across Europe and if they are not profitable, they can face a hard time to keep stable. This means that it’ll be a long to block the influence of these upcoming digital currencies.