In a letter addressed to Eva Kaili, a member of the European parliament and a well-known cryptocurrency advocate, the current president of the European Central Bank, Mario Draghi, lays down his views on cryptocurrencies and their future in the banking sector.
According to the letter, the European System of Central Banks (ESCB) is monitoring developments in the financial sector, and apparently has an open-minded approach to new technologies that align with its purposes.
Critical improvements of @ECB approach regarding #cryptocurrencies & #stablecoins #Libra President of ECB #MarioDraghi replied to MEP Eva Kaili & recognizes future potential as means of payment while keeping an open mind for the utility of a crypto-Eurohttps://t.co/YH4l3LzGG6 pic.twitter.com/ewhzKgkXQx— Eva Kaili (@EvaKaili) September 27, 2019
Draghi notes that digital assets and stablecoins are currently under investigation for their potential in “monetary policy, the safety and efficiency of payments and market infrastructures and the stability of the financial system.” Moreover, Draghi specifically mentions Libra as a new stablecoin arrangement that has the potential for widespread adoption and use due to being backed by large technology companies. That said, Libra still needs the approval of countries like France, as BeInCrypto previously reported.
Both Coeure and Bank of England Governor Mark Carney have noted that stablecoins could ultimately challenge the dollar’s dominance in global trade and status as the world’s reserve currency. Carney used a U.S. Federal Reserve symposium last month in Jackson Hole, Wyoming, to say that a Libra-like global digital currency -- issued by central banks -- would be preferable to allowing another national currency such as China’s renminbi to take the dollar’s place.
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