Daniel Daianu, the president of the Fiscal Council, took a firm stance in criticizing Libra as the project continues to stay under controversies.
In his speech at the Romanian Academy, Daianu mentioned that cryptocurrencies are highly speculative financial assets, and projects such as Libra are “very dangerous.” He declared: relying whether, on a bunch of assets or coins, such projects are eventually a part of the logic created by those who believe in a need for parallel markets. Daianu recited that the discussion is much more profound as people have started thinking that other currencies, parallel circuits, non-hierarchical structures are required because the monetary crisis ravaged the reputation of governments and central banks.
Coming to Libra, the president went on to speak that Libra is hazardous as it would target billions of users. Furthermore, he shed light on the prevalent fear that the stablecoin would irreparably wreck the monetary system, and the central banks would lose their effectiveness.
Daianu also remarked that central banks are already facing challenges in forming and executing their policies. He stated, “For the future, if we put cryptocurrencies aside, which have to be very strictly regulated, I am for a very severe regulation of capital markets, of what is called the shadow banking sector. In the future, monetary policy will be a mix of pragmatic inflation targeting and the control of monetary aggregates. Macro-prudential measures inevitably also mean the control of monetary aggregates, because we are trying to put a stop to the movement of money in the economy.”
