Big-tech’s stablecoins may hurt privacy and innovation: ECB

Shadow of a 3D-printed Facebook Libra cryptocurrency logo is seen near cryptocurrency representation in this illustration taken
FILE PHOTO: Shadow of a 3D-printed Facebook Libra cryptocurrency logo is seen near cryptocurrency representation in this illustration taken, September 13, 2019. REUTERS/Dado Ruvic

November 4, 2020

FRANKFURT (Reuters) – A stablecoin managed by a big tech company, like Facebook’s <FB.O> proposed libra, would raise concerns about data protection and even choke financial innovation, European Central Bank board member Fabio Panetta said on Wednesday.

“The issues at stake range from data security and compliance with EU data protection law to cutting off the lifeblood of European financial innovation,” Panetta said.

(Reporting By Francesco Canepa; Editing by Balazs Koranyi)