Digital giants like Facebook present a “considerable risk” in Europe because of their efforts to launch digital currencies, a member of the Executive Board of the European Central Bank (ECB) judged on Friday.

“If they are not well regulated, tech giants can present significant economic and social risks, and they could restrict, rather than increase, consumer choice,” Fabio Panetta said during a speech & agrave; Frankfurt as part of a Bundesbank conference.

As a result of the coronavirus pandemic, electronic payment methods are increasingly sought after in Europe — a development that should continue, according to Mr Panetta.

For the Italian banker, relying on imported solutions “increases the risk of personal data being misused for commercial use”, putting privacy and competition at risk.

In addition, European payment systems “could become dependent on technologies invented and managed elsewhere”, making them more vulnerable, particularly in the face of cyber attacks.

Highly watched, Facebook is currently working on a digital currency project, called “Libra”, which should allow customers to transfer funds quickly and cheaply.

The new offers “could be effective payment solutions” but also “damage competition, data protection, financial stability, and even monetary sovereignty,” Panetta warned.

To support the explosion of electronic payments, the ECB is working on a “digital euro”, which would be an electronic form of central bank money, existing alongside cash.

The consultation, designed to find out the expectations of the general public, the financial sector and institutions, will last three months and “tests” will be carried out for six months.

The ECB will then decide “around mid-2021" whether or not to start working on the digital euro.

beginning of November, Paris, Berlin, Rome, Madrid, and The Hague required very strict rules for the deployment of cryptocurrencies on European soil.