Yves Mersch who is from the Central Bank of Luxembourg said that the proposed virtual asset’s launch could weaken European Bank’s ability to introduce monetary policies and stated that the rest of Europe should avoid its “treacherous promises.” according to Reuters reports.
“Depending on Libra’s level of acceptance and on the referencing of the euro in its reserve basket, it could reduce the ECB’s control over the euro, impair the monetary policy transmission mechanism by affecting the liquidity position of euro area banks, and undermine the single currency’s international role,”
All of this comes after Bank of England Governor Mark Carney said that a crpyocurrency like Libra could overthrow the US Dollar as the reserve currency of the world. Mersch then went on to say:
“It is scheduled for release in the first half of 2020 by the very same people who had to explain themselves in front of legislators in the United States and the European Union on the threats to our democracies resulting from their handling of personal data on their social media platform,”
“I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favor of the beguiling but treacherous promises of Facebook’s siren call,”
Although this is not at all an endorsement of the cryptocurrency its clear to see he doesn't think he can do anything about it. Mersch is trying to warn off the European people while the ECB are about to start another round of QE and bond buying (buying company debt). Lets see if the financial mess the ECB have created sends the young people of the world to look for a monetary alternative.
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