"It might be that it is sooner than we think...[that] we have to create our own digital currencies."
When the whitepaper for Facebook's Libra cryptocurrency project was published in mid-June, it was immediately met with regulatory backlash. Lawmakers and government officials commented that Facebook was too big, that Libra came too fast, and that cryptocurrency, in general, is still too risky to operate on such a large scale. Some regulators called for a moratorium on the project; others said that Libra must never be recognized as a sovereign currency.
But now, central banks may be looking to take one step further. If nothing else, the creation of Libra--and the resulting hype--highlighted a global need for faster, more efficient, and further-reaching payment systems and financial services.
But rather than explicitly calling for governments to put an end to Facebook’s cryptocurrency project (or similar projects), Agustin Carstens, the General Manager of the BIS, recently said that countries might need to start to seriously consider launching their own digital banknote to fill consumers’ needs before Libra has a chance to.
”It might be that it is sooner than we think that there is a market and we have to create our own digital currencies.”
Indeed, in an interview with the Financial Times, Carstens commented that “it might be that it is sooner than we think that there is a market and we have to create our own digital currencies.”
He also said that “many central banks are [already] working on it; we are working on it, supporting them.”
Some countries have already publicly considered the creation of (or experimented with) such assets. Sweden’s e-Krona, for example; Singapore’s Project Udin and Denmark’s e-Krone have also been quietly explored.
But Carstens did acknowledge that he isn’t completely sure about the demand for national digital currencies and explained that further developments need to happen in the markets before this can be determined.
“There needs to be evidence for [the] demand for central bank digital currencies and it is not clear that the demand is there yet,” he said. “Perhaps people can do what they want by using electronic wallets provided by banks or fintech companies. It depends on the development of payment systems.”
Estonia’s Estcoin, for example, was dropped after EU regulators took issue with the concept of an EU country issuing its own currency; Mario Draghi, president of the European Central Bank, declared that “no member state can introduce its own currency; the currency of the eurozone is the euro.”
Regardless of whether or not regulators change their position on the issuance of national digital currencies, Carstens and the BIS are calling on regulators to engage in some sort of structural reform. He commented that while the regulations that are currently in place may have been suitable for the markets when they were put onto the books, things have changed.
“The effectiveness of very aggressive monetary policy dwindles through time,” he explained. “It will always have some impact, it is effective to combat downturns — but it is not a pillar for higher sustainable growth.”
"[Libra] will ultimately need literally hundreds, perhaps thousands, of licenses from hundreds of different regulators across the globe."
But even if countries don’t make the decision to release their own digital currencies, a new set of "aggressive" policies could shut Libra down before it even begins.
“It’s a complete disaster from a regulatory perspective,” said Barry Lynn, executive director of antitrust advocacy group the Open Markets Institute, to Reuters. “This is a corporation that’s got fires all over the world with regulators. It’s only going to get worse.”
“They will not get a free pass anywhere,” said Sean Park, Founder and Chief Investment Officer at venture capital firm Anthemis, also to Reuters “And, given their intention to be global, they will ultimately need literally hundreds, perhaps thousands, of licenses from hundreds of different regulators across the globe.”
When the whitepaper for Facebook's Libra cryptocurrency project was published in mid-June, it was immediately met with regulatory backlash. Lawmakers and government officials commented that Facebook was too big, that Libra came too fast, and that cryptocurrency, in general, is still too risky to operate on such a large scale. Some regulators called for a moratorium on the project; others said that Libra must never be recognized as a sovereign currency.
But now, central banks may be looking to take one step further. If nothing else, the creation of Libra--and the resulting hype--highlighted a global need for faster, more efficient, and further-reaching payment systems and financial services.
But rather than explicitly calling for governments to put an end to Facebook’s cryptocurrency project (or similar projects), Agustin Carstens, the General Manager of the BIS, recently said that countries might need to start to seriously consider launching their own digital banknote to fill consumers’ needs before Libra has a chance to.
”It might be that it is sooner than we think that there is a market and we have to create our own digital currencies.”
Indeed, in an interview with the Financial Times, Carstens commented that “it might be that it is sooner than we think that there is a market and we have to create our own digital currencies.”
He also said that “many central banks are [already] working on it; we are working on it, supporting them.”
Some countries have already publicly considered the creation of (or experimented with) such assets. Sweden’s e-Krona, for example; Singapore’s Project Udin and Denmark’s e-Krone have also been quietly explored.
But Carstens did acknowledge that he isn’t completely sure about the demand for national digital currencies and explained that further developments need to happen in the markets before this can be determined.
“There needs to be evidence for [the] demand for central bank digital currencies and it is not clear that the demand is there yet,” he said. “Perhaps people can do what they want by using electronic wallets provided by banks or fintech companies. It depends on the development of payment systems.”
Estonia’s Estcoin, for example, was dropped after EU regulators took issue with the concept of an EU country issuing its own currency; Mario Draghi, president of the European Central Bank, declared that “no member state can introduce its own currency; the currency of the eurozone is the euro.”
Regardless of whether or not regulators change their position on the issuance of national digital currencies, Carstens and the BIS are calling on regulators to engage in some sort of structural reform. He commented that while the regulations that are currently in place may have been suitable for the markets when they were put onto the books, things have changed.
“The effectiveness of very aggressive monetary policy dwindles through time,” he explained. “It will always have some impact, it is effective to combat downturns — but it is not a pillar for higher sustainable growth.”
"[Libra] will ultimately need literally hundreds, perhaps thousands, of licenses from hundreds of different regulators across the globe."
But even if countries don’t make the decision to release their own digital currencies, a new set of "aggressive" policies could shut Libra down before it even begins.
“It’s a complete disaster from a regulatory perspective,” said Barry Lynn, executive director of antitrust advocacy group the Open Markets Institute, to Reuters. “This is a corporation that’s got fires all over the world with regulators. It’s only going to get worse.”
“They will not get a free pass anywhere,” said Sean Park, Founder and Chief Investment Officer at venture capital firm Anthemis, also to Reuters “And, given their intention to be global, they will ultimately need literally hundreds, perhaps thousands, of licenses from hundreds of different regulators across the globe.”
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
MARA Stock: Shares of Wall Street's Biggest Crypto Miner Set to Surge 50%
Featured Videos
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The Role of PAMM, MAM & Copy Trading in Business Growth Strategies | Webinar
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
The copy trading market is projected to double in size, growing from $2.2 billion to $4 billion by the end of this decade. In light of this, brokers and financial institutions are increasingly adopting PAMM, MAM, and Copy Trading solutions to scale operations and drive profitability. In this insightful webinar, Sergey Ryzhavin, Product Owner at B2COPY, outlines the advanced features of the B2COPY platform, showcasing how it enhances Copy Trading, PAMM, and MAM performance. Sergey also explores strategies for using these tools to attract new clients, improve customer engagement, and create additional revenue streams.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Relive the best moments from the Finance Magnates Pacific Summit 2024 with our highlights video! ✨
From action-packed moments, insightful speaker sessions, the exclusive Opening Blitz, and immersive workshops, this video captures the energy and excitement of FMPS:24. Whether you attended or missed out, here’s your chance to experience the top moments that made FMPS:24 unforgettable.
🎬 Watch, share, and join the conversation!
Don’t forget to use the hashtags #fmps #fmps24 #FMevents when sharing.
Stay tuned for more events. See you next time!
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!