A recent meeting among Facebook, J.P. Morgan, and Bank for International Settlements (BIS) show a tough journey for the cryptocurrencies Libra of Facebook and JPM Coin of J.P. Morgan. The BIS is an umbrella group of the largest central banks in the world.
A consortium of seven countries to scrutinize Facebook’s concept of stablecoins called the meeting. Benoit Coeure, an Executive of ECB, chaired it. The BIS comes up with multiple security and risk issues for stablecoin. Moreover, skeptical central bank executives are not confident about the stability of the stablecoin as a global payment system.
Coeure echoed the rest of the BIS executives stating the issues with the public policy priorities of the Libra and JPM Coin. The meeting ended with the view that the bar for launching those cryptocurrencies will be higher. Moreover, the bankers are looking for further discussions to resolve the concerns with stablecoins.
Neither BIS nor ECB disclosed the identities of the participating banks. However, reliable sources confirm separate meetings with U.S. Federal Reserve and other 26 central banks.
Facebook develops Libra in association with a Switzerland based consortium Libra Association. The consortium is also associated with Uber, Visa, and Coinbase. Facebook officials are confident about this venture and are looking forward to negotiating further with the central banks.