In the context of monetary policy, the ECB takes a close interest in market innovations that could directly or indirectly affect the Eurosystem’s control over the euro or shift some of its monetary policy to third parties.
Depending on Libra’s level of acceptance and on the referencing of the euro in its reserve basket, it could reduce the ECB’s control over the euro, impair the monetary policy transmission mechanism by affecting the liquidity position of euro area banks, and undermine the single currency’s international role, for instance by reducing demand for it.