The electronic cash could be directly deposited at the European Central Bank, thereby eliminating the need for bank accounts, according to a proposal prepared for finance ministers from the bloc’s member nations. (Reuters)

Talking point: Regulators around the world are increasingly raising concerns about Facebook’s Libra. In October, The Logic reported that the Bank of Canada was exploring launching its own digital currency. The same month, the G7 said stablecoins like Libra should not be allowed until regulatory concerns are addressed. Large companies—including eBay, Visa, Mastercard, Stripe and PayPal—have already pulled out of the Libra Association. The EU proposal sets up a potential showdown with another type of firm: big banks. No bank signed on to the association, which could potentially cut them out of the lucrative currency trading market. This proposal offers a different—but no less serious—challenge to their business model.