ECB’s Benoit Coeure to Head a Global Crypto Effort by Central Banks

Outgoing member of the executive board of the European Central Bank (ECB) Benoit Coeure is to head a new worldwide initiative by central banks to research the advantages of fintech like cryptocurrencies. 

The Bank for International Settlements (BIS) revealed the news on Sunday, stating that Coeure will assume the role of leader of the BIS Innovation Hub, “set up to foster international collaboration among central banks on innovative financial technology.” Initially, the post is for a five-year term beginning in January 2020.

Coeure said in an announcement:

“I am very happy to be joining the BIS. I look forward to bringing my expertise to the global central banking community at this time of rapid technological change. We must make the best use of innovation to support financial stability and promote financial inclusion.”

The Innovation Hub has been designated the remit of distinguishing significant trends in fintech that could benefit central bank operations and creating open framework to support the organizations’ activities.

Among the focus areas are central bank digital currencies, worldwide stablecoins and other installment developments. As indicated by its site, the gathering will likewise take a gander at regtech, electronic markets, the digitization of exchange account and “the effect of enormous tech on money related intermediation,” (which, at a supposition, incorporates the Facebook-drove Libra venture).

The new hub chief has earlier stated that Libra has “undoubtedly been a wakeup call for central banks and policymakers,” contending that they must address the challenges brought by worldwide stablecoins.

At the time, he recognized that Libra and comparative initiatives could help the unbanked join the financial framework and make cross-border payments less expensive, quicker, and more transparent. On the other hand, he also mentioned an extensive rundown of potential risks like money laundering, tax, and consumer issues, along with the threat to the financial policies of central banks.

Coeure additionally headed a Committee on Payments and Market Infrastructure panel questioning Libra over its planned structure and scope in September.