A board member of the European Central Bank, Yves Mersch, spoke on Facebook's cryptocurrency, Libra. The Luxembourger is certainly not a fan of the project.
Libra is a trick
A conference was held in Frankfurt involving representatives of the European Central Bank. When the question about Libra was asked, Yves Mersch, a member of the board of the ECB, gave his opinion. He expressed his doubts about the project and explained the threat it brings in connection with the monetary policy of the European Union. Libra, as Mersch claims, may upset the financial stability in Europe.
Libra? It's a beguiling, but at the same time treacherous, project. Currencies set by corporations have very small chance of competing with fiat currencies. In addition, Libra comes from the hands of the same people who defend themselves against allegations of abuse and leaks of personal data on social media.
Mersch's other concern is the structure of this project. The Libra Association consists of companies that have joined forces in order to bring cryptocurrency to the market. All these companies are in the areas of payment, technology, telecommunication and social media. According to Mersch, Libra is a negation of the idea of cryptocurrency as it is not decentralized, public, and neutral. It means that big corporations may try to adopt the role of central banks.
Mersch's observations are often shared by many legislators around the world. The question is, however, if it is not just an exaggeration that scares investors. The member of the ECB's board has repeatedly emphasized in his speech that large corporations cannot rely on clients to create a monetary system.
Nevertheless, everyone nowadays chooses themselves what type of money they will use because each type of money has its own specific value, which can change over time. It is difficult, therefore, for any office to be able to manipulate them with any kind of coercion.