Digital giants like Facebook present a "
considerable risk
" in Europe because of their efforts to launch digital currencies, a member of the executive board of the European Central Bank (ECB) ruled on Friday.
"
If not properly regulated, tech giants can pose considerable risk from an economic and social perspective, and they could restrict, rather than increase, the choice available to consumers,
" said Fabio Panetta during a speech in Frankfurt at a Bundesbank conference.
Read also: The ECB warns about the vulnerability of European banks
As a result of the coronavirus pandemic, dematerialized payment methods are increasingly sought after in Europe - a development that should persist, according to Fabio Panetta.
For the Italian banker, relying on imported solutions "
increases the risk that personal data will be diverted for commercial use
", endangering privacy and competition.
In addition, European payment systems "
could become dependent on technologies invented and managed elsewhere
", making them more vulnerable, particularly in the face of cyber attacks.
Highly observed, Facebook is currently working on a digital currency project, called "
libra
", which should allow customers to transfer funds quickly and inexpensively.
The new offers "
could be effective payment solutions
" but also "
damage competition, data protection, financial stability and even monetary sovereignty,
" warned Fabio Panetta.
To support the explosion of dematerialized payments, the ECB is working on a “digital euro”, which would be an electronic form of central bank money, existing alongside cash.
The consultation, intended to determine the expectations of the general public, the financial sector and institutions, will last three months and “
tests
” will be carried out for six months.
The ECB will then decide “
around mid-2021
” whether or not to start the digital euro.
Read also: Faced with libra, Europe is preparing its digital euro
At the beginning of November, Paris, Berlin, Rome, Madrid and The Hague had demanded very strict rules for the deployment of cryptocurrencies on European soil.
