ECB warns big-tech stablecoins threaten privacy and innovation

Digital currencies issued by large technology companies, such as Libra from Facebook, raise concerns about data protection. This was stated by Fabio Panetta, a member of the European Central Bank’s Executive Board, Reuters.

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“A wide range of questions are at stake: from data security and compliance with the EU’s data-protection law to the winding down of European financial innovations,” he said.

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Earlier Panetta spoke about the advantages of the digital euro. According to him, a CBDC would foster the digitisation of payments and the modernization of the European economy.

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What is central bank digital currency (CBDC)?

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The ECB has long warned about Libra in negative terms. In May the regulator issued a document outlining Libra’s potential impact on financial stability.

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Meanwhile, the ECB is actively developing the digital euro initiative. In November, ECB President Christine Lagarde announced a survey on it for EU residents.

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