Libra members will have a discussion with 26 officials from global central banks, including the Bank of England and the US Federal Reserve.
According to a report published by the Financial Times, the discussions will focus on how the crypto project will implement global regulations regarding financial transactions. Many representatives of central banks and financial supervisors expressed concerns about the project’s ability to ensure transparency of operations and monetary security.
Benoît Coeuré, a member of the Executive Board of the European Central Bank (ECB), said the meeting would be held in Basel, Switzerland. He argued that “the standards that must be met for the Libra project to be absorbed are very tough”, especially if Libra wants to operate in the European Union.
The conclusions of this meeting will be sent to the finance ministers, who will attend the G7 meeting in October.
David Marcus: We are glad that we have the opportunity to explain in detail the Libra concept
After the last three months of suspicion and negative statements, the meeting with central banks is a positive signal for the Libra Association.
“We welcome this commitment and deliberately designed a long launch period to have these conversations, to educate stakeholders and to incorporate their feedback into our design.”
David Marcus, Calibra’s chief, previously tried to explain Twitter that the approach of the authorities is an exaggerated one. He argued that the Libra concept would not threaten the monetary sovereignty of nations, as global regulators have recently stated.
Stable cryptocurrency is designed to be “a better network and payment system that operates above existing currencies”, and as such “there is no new money creation, which will remain strictly the sovereign responsibility of the Nations.”
Marcus also said that the Libra will be backed 1: 1 by a fiat currency basket, which means that the monetary policies of central banks will affect it like any other fiat currency.
“I look forward to the Libra Association taking over the full management of the project after its status has been ratified, so that I can focus on building the caliber,”