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I admire all that Transferwise has done as a company, including lowering costs for many remittances, so I am surprised they make this change. They seem to be very smart guys who run it, but having got a very good brand name that works, moving to a confusing name seems rather 'unwise' to me.  

It's a good idea if the majority of parking companies sign up - and ideally give a discount to encourage regular parkers to put the destination into Google maps - best hurry up before Apple Pay puts out a rival program    

Good to hear Citi are taking this approach; hopefully this will include working on lowering costs of remittances and aid (with us?) at some stage as this is the critical income support for so many. 

While I agree the crypto format is not in itself suitable for payments, that role is being made possible by companies like PayPal acting as clearing agent. Having bitcoins on account with PayPal enables one to enjoy the added potential capital gain (and risk, of course) of holding BTCs, while having the balance used for fiat transactions at a low conversion cost. 

With interest rates low, and even negative in some places, this does make taking the risk quite interesting for the Robin Hood-type traders - and is likely to become a bigger issue as it is copied around the world. The added danger will be if the local PayPal equivalents do not have the capital to manage major movements; while the danger for central banks is loss of control of domestic money supply. 

So not one to be ignored ..     

I think David Marcus is an honorable person - and on that basis deserves respect. But that does not mean Diem should be allowed to put at risk the financial integrity of governments of hundreds of millions of people, by permitting a rival entity to undermine their fiat currencies.

We have a bitter recession as a follow through of the pandemic, which is causing pressure on many developing countries, including on their fiat currency values. It is too dangerous to permit a choice of swtiching to a dollar-based alternative, which could cause loss of money supply control and runs on the local banks.

If Diem is to become a payment system for all Facebook users, it should be part of a structure which settles into the domestic currencies, rather than opposing them. I hope that may become part of the solution; in that way it can help those most in need, not cause further harm by creating financial chaos.   

Yahya, I agree that commercial banks are generally slow to move forward on technological matters, not least because of legacy systems that require an enormous effort to change. However, I think we are looking here at what central banks - and local regulators - are prepared to authorize or, in the case of CBDCs, do.

As  Mr. Panetta says (in the article) there is an awareness of the risks, but these risks are not primarily for the ECB, at least at this stage. It is the central banks of remittance recipient countries that should act with urgency, if the parallel currency rates in operation are not to create disruption and large scale switching of bank account funds from the local fiat currencies to stablecoins (or even BTCs) in other currencies. 

Is there an answer? Yes, but it requires an international cillective response - and that is where the struggle will take place. 

If you see the ECB as solely responsible for euro-based countries, then 'stability' is a reasonable target, although against what? The role of the USD is under some pressure - and could be further undermined by PBOC actions now or in the future. 

But the role of the ESCB is broader; do you suggest it remains unconcerned about potential instability of the non-euro currencies? My comments above refer to these currencies, rather than the euro, but I agree the real concern is farther afield, where African, LatAm and Asian currencies are more in danger.

Do you not agree that the Facebook/ Whatsapp membership, of over 2 billion worldwide, could be enticed (by incentives, discounts etc.) to switch to the Libra structure from their domestic fiat currencies, if they get the option? Particularly if the recession continues in its current form - with its greater impact on LMICs and their currency values?

To bring it back to where you seem to be looking at this in solely euro-based countries interests, what do you see as the likely impact on migration from the Middle East and North Africa if those countries have currencies in freefall? 

Am I being over-dramatic? Can Facebook be expected to behave in a manner that fits with the compliance structure you propose? Who knows - but should we be taking the chance?       

While any increase in dollarization (via vehicles such as Libra's stablecoin) is bad for the market overall, including for Euro-based countries, the impact on currencies under greater stress is far more important.

Countries in Central and South America, Eastern Europe (including Poland and Hungary), along with all of Africa and non-China Asia, are at high risk of currency turmoil if Libra is able to be bought by their citizens. The loss of control of their government's money supply will be hard to reverse - and even more convoluted if and when China opens up yuan-based CBDCs. 

As being said here, urgent action is needed - not in number of years but numbers of weeks - but mainly by central banks in the most at-risk countries - starting with remittances and aid payments. 

Action to block Libra is needed this year, not later. The ECB could be critical in protecting the non-Euro EU 27 countries and currencies.

Just what everyone needs - the ability to fiddle with your ring while in a meeting, set the oven to cook for six hours and unlock and start each of the cars wherever they may be! 

Of the many benefits of a digital euro, being able to assist those who are unbanked or under-banked is an obvious primary target. In particular, how to assist remittances and donations is an area where the potential is great, not least in assisting better exchange rates for these small but critical transactions.

There can be situations where national central banks/ governments of Member States can encourage more support payments - even from other MS - by adjusting the FX rate for Euro/ Euro transfers, let alone from all other currencies, for the strictly limited roles of remittances and donations. 

Digital currency reporting and control proceedings can speed up such functions,something sorely needed during these difficult times for many of those most in need.