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The Facebook-led Balance project is expected to answer questions from 26 central banks about the perceived risks to financial stability posed by the cryptocurrency project.
On Monday, the Commission for Payments and Market Infrastructures – a forum for central banks under the Bank for International Settlements – will interview the Libra Association in Basel, Switzerland, officials at the Financial Times said. Participants would include the Bank of England and the US Federal Reserve.
Benoit Coeure, member of the Board of Directors of the European Central Bank, will chair the meeting at which Libra should answer questions about its scope and structure. The central bank's findings will be included in an October report for the G7 countries in October, an FT official said.
Friday, following a meeting of EU finance ministers in Helsinki, Finland, Mr Coeure said that cryptocurrency projects like Libya had caused "very strong concerns" .
In a Bloomberg report on Friday, he reportedly said:
"We have to look very carefully at these projects, the bar for regulatory approval has been set very high."
Coeure, however, added that Libra "has sparked new thinking on how to improve our payment systems."
Libra will probably have to strongly defend its plans as regulators around the world have expressed concern about the project, which would offer digital currency payments to billions of Facebook users around the world.
More particularly, perhaps last Thursday, the French Minister of the Economy and Finance, Bruno Le Maire, threatened to block Libra in the EU saying:
"I want to be absolutely clear: under these conditions, we can not allow the development of Libra on European soil."
The threat of Libra on national currencies has also prompted the authorities to intensify their plans for central bank-based digital currencies.
The People's Bank of China would rush to launch its digital yuan against Libya, with a special team working on the project in secret offices located far from the headquarters of the institution.
In his comments on Thursday, The Mayor also said that he had discussed the creation of a "public digital currency" with ECB President Mario Draghi and Christine Lagarde, who will take office more late this year.
Hearing added Friday that it was time for regulators to "strengthen our thinking on a central bank's digital currency," according to the FT.
Image of Benoit Coeure via BCE / Flickr
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