Yves Mersch, board member of the European Central Bank (ECB), commented that Facebook’s Libra could pose danger for the European monetary policy, reported Reuters. The ECB has a mandate to look over the liquidity and steer the pace of the Eurozone economy through its interest rate and liquidity interventions. A large-scale digital asset could create an informal economy that is outside the control of the ECB, commented Mersch.
“Depending on Libra’s level of acceptance and on the referencing of the euro in its reserve basket, it could reduce the ECB’s control over the euro, impair the monetary pol...