ECB director Fabio Panetta warns of data protection problems with cryptocurrencies from abroad such as the planned Facebook money Libra.
By Shaukat Goraya
“Entrusting foreign providers to control large amounts of personal data could entail significant costs for EU citizens as ell as companies“, said Panetta on Wednesday at an event organized by the Italian Bankers Association. It is about questions of data security and compliance with EU data protection law, but also about finance innovations in Europe.
Facebook has shaken governments, regulators and central banks around the globe with its plans for its own digital money. The Libra Association, which was founded to develop the cyber-devise submitted an application for approval as a means of payment in Switzerland in April. However, many governments have reservations about letting Facebook penetrate the financial sector with a digital currency.
According to Panetta, so called stablecoins, including Libra, can be associated with considerable risks for sovereignty over money, financial stability, the market structure in the EU, competitiveness and technological independence. First of all it must therefore be ensured that such cryptocurrencies are an advantage and not a disadvantage for EU citizens.
Panetta is a member of a six-person management team of the European Central Bank (ECB) and is responsible for European and international relations, among other things.
Donations:
BTC - 3KXN4SeMpFHxSkfVzzDNvHhrtjCRUwUcqu
ETH - 0xC41084FCA8c90D56385231D3d3fC6EaBa2c14530
USDT - 0x357DB53787dA850cbD496f50AEf64CB386A006b5
