ECB director Benoit Coeure seen during an interview at the ECB headquarters in Frankfurt, Germany on May 17, 2017.Kai Pfaffenbach/Reuters
Global financial regulators have no plan to ban Facebook’s Libra or other stablecoins, but these digital tokens backed by official currencies will have to meet the highest regulatory standards, European Central Bank director Benoît Coeuré said in an interview published on Thursday.
His comments provide a rare ray of light for Facebook’s cryptocurrency plans, which have been widely criticized by regulators and politicians since the social-media group unveiled the currency in June.
“There is certainly no judgment that stablecoins shouldn’t exist,” Mr. Coeuré said.
European policy makers have voiced strong opposition to Libra, with France pledging to block its launch in Europe over worries about its impact of financial stability and its potential to undermine monetary sovereignty.
But Mr. Coeuré, who is French, was more constructive.
“In the case of Europe, neither the Commission nor the ECB intend to make Europe a no-fly zone for stablecoins. But stablecoins will have to meet the highest regulatory standards and adhere to broader public policy goals,” he said.
Libra’s backers pledged to forge ahead with the project on Monday, shrugging off the defection of seven of its founding members, including major payments firms Visa and Mastercard, amid the regulatory criticism.
Libra said the digital currency’s regulatory issues could push back its launch date, planned for the end of June next year.
On Thursday, Mr. Coeuré is due to present the recommendations of a Group of Seven task force on stablecoins to finance ministers from the world’s seven largest economies gathering in Washington for the International Monetary Fund’s annual meetings.