FILE PHOTO: Benoit Coeure, board member of the European Central Bank (ECB), is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo
LUXEMBOURG (Reuters) – Digital currencies such as Facebook’s (FB.O) Libra digital coin will disrupt the financial system by either forcing central banks to innovate or because states will cede a key role to a new global player, ECB board member Benoit Coeure said on Tuesday.
“Global ‘stablecoin’ initiatives, such as Libra, will prove disruptive in one way or another,” Coeure told a conference in Luxembourg. “They are the natural result of rapid technological progress, globalisation and shifting consumer preferences.”
“Libra has undoubtedly been a wake-up call for central banks to strengthen their efforts to improve existing payment systems,” Coeure added.
Reporting by Balazs Koranyi; Editing by Chizu Nomiyama