Global regulators will ask representatives from Facebook's Libra to prove how the cryptocurrency will not be of threat to financial stability.
Facebook’s Libra will go through the eye of a needle in convincing EU governments to give it the green light to operate in the region.
According to a Reuters report, representatives from Libra will be meeting with the officials from the US Federal Reserve and the Bank of England, along with those from 24 central banks, on Sep. 16 in Basel, Switzerland amid concerns raised by EU governments.
The meeting, which may be chaired by The European Central Bank’s Benoît Coeuré, will be asking Libra to shed more light on its currency’s “scope and design.”
Coeuré, a board member of the ECB, said last week that EU finance ministers are worried that Libra could cause financial instability and threaten financial sovereignty of said governments. Supporting his statement was the agreement between the finance ministers of France and Germany — Bruno Le Maire and Olaf Scholz, respectively — that EU should block Libra.
Another factor that may hinder Libra’s operation in the EU is the central bank digital currency project called TIPS backed by the ECB.
Libra representatives, meanwhile, had previously said they welcome feedback to find the best set-up for their product to meet the standards of regulators.
Facebook announced Libra in June this year, pegging it as a means of democratizing money across the globe.