Commercial banks should work out their own transfer systems as an alternative to Facebook’s Libra, urged Jens Weidmann, President of Bundesbank and member of the Governing Council of the European Central Bank (ECB).
Euro Area Banks Should Not Rely on Facebook’s Libra
Banks in the Euro area should explore tools for faster, cheaper transfers, but also be cautious about avoiding Libra and cryptocurrency technologies from the private sector, reported Bloomberg. Weidmann also differentiated himself from the stance of ECB President Christine Lagarde, not expecting the bank to jump in and offer a crypto asset of its own.
“I’m not in favor of always immediately calling on the state” to come up with solutions, Weidmann said in a Handelsblatt interview on Thursday, January 2. “In a market economy, it’s up to companies to develop products that meet customer demands.”
Weidmann stated he is not opposed to exploring digital assets, but has warned against rushing too fast without exploring the consequences. He added all currencies and transfer…