According to news published on Bloomberg on Septemeber 2, Yves Mersch, an executive board member at the European Central Bank (ECB), stated that Facebook’s proposed Libra currency could undermine the European Central Bank’s ability to set monetary policy.
You Can’t be a Central Bank
During the European Central Bank conference in Frankfurt, Yves Mersch, an executive board member, expressed his doubts about Facebook’s Libra and the risks it could present for European economic stability.
Mersch defines the project as “beguiling but treacherous”. According to him, corporate currencies have little or no chance of establishing themselves as a reliable alternative to FIAT currencies.
His arguments focus on the infrastructure that supports Libra, the Libra Association, and on the reputation of the company that “sponsors” the project, Facebook.
During his speech, he ironically pointed out that Libra comes from the same people who had to defend themselves in front of legislators in the United States and the European Union on the threats to our democracies resulting from a leak of personal data from their social media platform. A clear reference to the Cambridge Analytica case that previously hit Facebook.