Libra Alarm Sounded in EU With Warning on High Bar for Approval

The European Central Bank warned Facebook Inc. that the bar for regulatory approval of its planned Libra project has been set very high as governments in the region express concerns about digital currencies.

The projects are wrought with risks, including a possible “race to the bottom” in terms of regulatory arbitrage, European Central Bank Executive Board Member Benoit Coeure warned. “There are very strong concerns,” he said in Helsinki on Friday, calling for a global approach to cryptocurrencies.

Euro-zone policy makers have sounded the alarm over Libra ever since Facebook unveiled its plans in June. French central bank governor Francois ...