ECB's Coeure says 'stablecoins' pose risks amid resistance to Facebook's Libra

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ECB's Coeure says 'stablecoins' pose risks amid resistance to Facebook's Libra
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A new breed of asset-backed cryptocurrencies such as Facebook's Libra are u...

FILE PHOTO: Benoit Coeure, board member of the European Central Bank , is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo

Coeure’s comments came during an event at the Bank of International Settlements in Basel, where the Group of Seven working group on so-called stablecoins met to discuss regulatory issues posed by the new digital currencies. Facebook’s planned Libra is the most well-known of the stablecoins, cryptocurrencies usually backed by a range of assets such as traditional money deposits. These new digital coins are designed to overcome the wild price swings that have rendered bitcoin impractical for commerce and payments.

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