A board member of the European Central Bank (ECB) has argued that stablecoins like Facebook’s long-awaited Libra coin pose risks to public policy priorities. ECB board member Benoit Coeure delivered his comments on stablecoins’ regulatory issues at a meeting at the Bank of International Settlements (BIS) in Basel, Switzerland, Reuters reported on Sept. 16. Coeure specifically stated: “Stablecoins are largely untested, especially on the scale required to run a global payment system. [...] They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.” 26 global central banks and …

CEO of Calibra, Facebook’s digital wallet for its proposed Libra stablecoin, has attempted to debunk the notion of Libra’s threat to the global financial system. Not new money but a better payment network Amid the ongoing meeting between Libra founders and 26 global central banks in Basel, Calibra CEO David Marcus has stepped up to protect the position of the Libra Association on Twitter on Sept. 16. In a Twitter thread titled “About monetary sovereignty of Nations vs. Libra,” Marcus wrote: “Recently there's been a lot of talk about how Libra could threaten the sovereignty of Nations when it comes …

PayPal representatives have said they remain cautious about the future of Facebook’s planned stablecoin Libra, according to a Sept. 14 report from Agence France Press (AFP). PayPal investor relations vice president Gabrielle Rabinovitch reportedly emphasized that the firm’s membership of the Libra Association represents a “non-binding commitment," noting that: "Obviously, I think there's a lot of work to happen before we get to that point where it [Libra] becomes something more than just a very exciting idea." “Democratizing access to capital” As previously reported, the Libra Association is an independent, not-for-profit membership organization established to govern the forthcoming Libra network. …

Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link. Top Stories This Week Facebook’s crypto launching in H2 2020, says Libra Association chief The head of the not-for-profit driving Facebook’s Libra digital currency has said he is confident that seemingly endless regulatory difficulties can be ironed out — paving the way for the token to launch in the second half of 2020. Bertrand Perez’s comments came on Thursday …

Officials from the European Central Bank (ECB) and 25 global central banks will meet with Libra to assess the financial stability risks of the project. Central bank forum to challenge Libra On Sept. 16, Libra representatives will meet with the Committee on Payments and Market Infrastructure (CPMI), a part of the Bank of International Settlements (BIS), in Switzerland, the Financial Times reports on Sept. 14. The CPMI, a BIS international standard setter and a member of the Financial Stability Board, consists of 28 member banks, including the Bank of England, Deutsche Bundesbank and the Federal Reserve Bank of New York. …

The government of Germany has spoken against the authorization of the development of Facebook’s forthcoming Libra stablecoin in the European Union. As German weekly news magazine Spiegel reported on Sept. 13, the Christian Democratic Union (CDU) parliamentarian Thomas Heilmann — who is responsible for the blockchain policy of the CDU and Christian Social Union in Bavaria set to be approved later in September — the government will deny projects like Libra. “Not to allow market-relevant private stablecoins” Heilmann stated that it was agreed in the grand coalition "not to allow market-relevant private stablecoins." He further explained: "Up to now, the …

French Finance Minister Bruno Le Maire has said that Europe should consider its own “public digital currency” that could challenge Facebook’s Libra. The minister’s remarks — the latest in a series of vocal misgivings about the social media giant’s cryptocurrency plans — were reported by Reuters on Sept. 13. “EuroCoin”? At a meeting of EU finance ministers in Helsinki, Le Maire told reporters that he would be discussing the potential for a European public digital currency with his counterparts on the continent next month. He also reiterated his concerns that the proposed Libra stablecoin could pose risks for consumers, financial …

France plans to block the development of Libra — Facebook’s proposed stablecoin payments network — in Europe. French Finance Minister Bruno Le Maire said that the country cannot permit the launch of Facebook’s proposed cryptocurrency in Europe because the "monetary sovereignty of states is at stake," CNBC reported Sept. 12. The report notes Le Maire’s apparently resolute stance — delivered at the opening of the OECD Global Blockchain Policy Forum 2019 in Paris — as follows: “All these concerns around Libra are serious. So I want to say this with a lot of clarity: I want to be absolutely clear: …

Switzerland’s financial watchdog says it is open to international cooperation and oversight of the way in which it regulates Facebook’s planned cryptocurrency network. In a Sept. 12 interview with Neue Zürcher Zeitung (NZZ), Financial Market Supervisory Authority (FINMA) director Mark Branson said it was illusory to believe that a single country could regulate a project of Libra’s scope on its own. Libra ‘fits perfectly’ into Switzerland’s regulatory framework Branson argued that Switzerland’s ambitions to evolve into a major financial center would necessarily entail reputational risks and thus draw international attention: “Shy of these risks, you have less attention, but may …

Switzerland’s Financial Market Supervisory Authority (FINMA) has published a stablecoin-focused supplement to its existing guidelines for initial coin offerings (ICOs). In a news release published on Sept. 11, FINMA takes note of the steadily proliferating issuance of stablecoins since mid-2018, as well as confirming that the Geneva-based Libra Association had sought an assessment by FINMA for its stablecoin project under Swiss law. “Same risks, same rules” FINMA’s introductory remarks outline that the watchdog treats stablecoins as it does other blockchain-based tokens, with a focus “on the economic function and the purpose of a token” and with a “same risks, same …

The Libra Association, or which Facebook is a member, is seeking a payment system license under Switzerland’s Financial Market Supervisory Authority (FINMA) for its planned stablecoin project, Reuters reported on Sept. 11. “Regulated, low-friction, high-security” blockchain payments In an official statement today, the Switzerland-registered Libra Association — a not-for-profit membership organization established to govern the Libra network — Dante Disparte, the Libra Association’s head of policy and communications, said of the choice to coordinate with Swiss regulators: “We are engaging in constructive dialogue with FINMA and we see a feasible pathway for an open-source blockchain network to become a regulated, …

Developers working for startup OpenZeppelin, a third-party audit firm specializing in cryptocurrency, have discovered and patched a vulnerability in Facebook’s Libra’s open-source code. The problem According to an article by Coindesk on Sept. 10, the crypto auditing firm found vulnerabilities in Move, which is a scripting language developed by Facebook for its stablecoin Libra. OpenZeppelin’s CEO Demian Brener said that the vulnerability would have enabled malicious actors to introduce executable code to smart contracts. He continued: “The good news is that it was found and patched before the platform was live. Issues once thought of as benign can become more …