Digital currencies such as Facebook’s Libra will disrupt the financial system, either by forcing central banks to innovate or by grabbing a global role that could challenge the dominance of the dollar, said ECB board member Benoit Coeure.
“Global ‘stablecoin’ initiatives, such as Libra, will prove disruptive in one way or another,” Coeure told a conference in Luxembourg. “They are the natural result of rapid technological progress, globalization and shifting consumer preferences.”
While regulators have expressed serious concerns about Libra, Coeure noted the attractiveness of such currencies, which could even allow them to compete more effectively with the dollar, something the euro was never able to do.
“Libra has undoubtedly been a wake-up call for central banks to strengthen their efforts to improve existing payment systems,” Coeure added.