Stablecoins like Libra threaten the monetary policy of European countries, believes the European Central Bank board member.

Benoit Coeur, member of the board of the European Central Bank (ECB), believes that stablecoins, such as Facebook's Libra, pose severe risks to public policy priorities. He made such a statement when speaking at a meeting at the Bank for International Settlements (BIS) in Swiss Basel on 16 September.

“Stablecoins are largely untested, especially on the scale required to run a global payment system,” said the European Central Bank executive board member, who chairs the BIS-hosted Committee on Payments and Market Infrastructures. “They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.”

The meeting in Basel was attended by representatives of 26 world central banks and the Libra project team. The purpose of the event was to assess the risks of financial stability of the project. This event was the first major meeting between the founders of Libra and world policymakers since Facebook announcement of Libra project plans on 18 June.

Earlier, Coeur warned that Libra will not receive regulatory permission to launch until all questions are answered. He noted that this stablecoin should give guarantees to be safe for users, both in terms of cybersecurity and in terms of protecting data privacy. Coeur also called on financial regulators to act quickly to prepare for the launch of Libra.

On behalf of Libra, Calibra CEO David Marcus spoke in Basel. Marcus said that Libra is not about creating a new currency, but rather aims to build the best payment network and system that works on top of existing currencies. He emphasized that the association’s plans do not include the creation of new money, “which will strictly remain the province of sovereign Nations.”

Earlier, Libra developers said they plan to launch the project in the second half of 2020.