‘Stablecoins’ pose risks amid resistance to Libra, says ECB’s Coeure

Shadow of a 3D-printed Facebook Libra cryptocurrency logo. (Reuters/File)
Updated 17 September 2019

‘Stablecoins’ pose risks amid resistance to Libra, says ECB’s Coeure

LONDON: A new breed of asset-backed cryptocurrencies such as Facebook’s Libra are untested and pose serious risks, the European Central Bank’s Benoit Coeure said on Monday, pledging a tough regulatory approach.

Coeure’s comments came during an event at the Bank of International Settlements (BIS) in Basel, where the Group of Seven working group on so-called stablecoins met to discuss regulatory issues posed by the new digital currencies.

“Stablecoins are largely untested, especially on the scale required to run a global payment system,” said Coeure, who chairs the BIS-hosted Committee on Payments and Market Infrastructures. “They give rise to a number of serious risks related to public policy priorities. The bar for regulatory approval will be high.”

Facebook’s planned Libra is the most well-known of the stablecoins, cryptocurrencies usually backed by a range of assets such as traditional money deposits. These new digital coins are designed to overcome the wild price swings that have rendered bitcoin impractical for commerce and payments.

The world’s largest social media network announced plans in June to launch the new currency as it expands into e-commerce, but Libra has come under fire from regulators around the world worried about its impact on the financial system and potential for use in money laundering.


Abu Dhabi Islamic Bank awards media duties to Carat

Updated 28 October 2020

Abu Dhabi Islamic Bank awards media duties to Carat

  • Carat’s approach will both complement our in-house digital marketing

DUBAI: Carat MENA has been awarded the offline media responsibilities for Abu Dhabi Islamic Bank (ADIB), a leading regional Islamic financial services group that serves more than a million customers through a distribution network in the UAE, Egypt, Iraq, Saudi Arabia, Qatar, Sudan and the UK.

The agency’s strength in strategic planning across media touchpoints and a data-driven, consumer-centric mindset provided by M1, Dentsu’s proprietary research tool, were said to be critical factors in the decision to select it for the role.

“This is a pivotal time for ADIB as we accelerate our evolution in becoming a market-leading digital bank by challenging old ways of doing things and pioneering the new,” said Inas Abou Salem, the bank’s global head of marketing, communications and branding.

“Carat’s approach will both complement our in-house digital marketing, while driving our offline media with the data-driven approach and strategic vision needed to drive consistent value for our customers.”

Ramzy Abouchacra, the CEO of Carat MENA, said: “We are delighted to be partnering with ADIB, integrating the best of our agency capabilities to support their digital transformation.

“Their ambition to innovate banking in the Middle East is exciting and clearly aligned with our ambition to redefine the role that media plays in driving transformative growth.”