The Facebook-led Libra project is to face questions from 26 central banks over the perceived risks to financial stability posed by the cryptocurrency project.
On Monday, the Committee on Payments and Market Infrastructure – a forum for central banks under the Bank for International Settlements – will quiz the Libra Association in Basel, Switzerland, officials told the Financial Times. The attendees will reportedly include the Bank of England and the U.S. Federal Reserve.
European Central Bank executive board member Benoit Coeure will chair the meeting, at which Libra is expected to answer questions on its planned scope and structure. The central banks' findings will be included in an October report for the G7 nations in October, an official told the FT.
On Friday, following a meeting of EU finance ministers in Helsinki, Finland, Coeure said cryptocurrency projects like Libra have raised "very strong concerns."
Coeure added however, that Libra "has prompted fresh thinking on how to improve our payment systems.”
Libra will likely have to make a strong case for its plans, with regulators worldwide having voiced concerns over the project which would offer digital currency-based payments to Facebook's billions of global users.
The threat to national currencies from Libra has also prompted authorities to ramp up plans for central bank-based digital currencies.
In his Thursday comments, Le Maire also suggested that he has discussed the creation of a “public digital currency” with ECB president Mario Draghi and Christine Lagarde, who will take over his position later this year.
Coeure added Friday that it was time for regulators to “step up our thinking on a central bank digital currency,” according to the FT.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.