European officials hope the currency will stymie the use of coins like Facebook’s Libra, which they see as being a risk to financial stability. The 19 countries will also impose strict regulations if Libra tries to get authorized in Europe. (Reuters)

Talking point: Europe has tried to improve digital payments in the past, but until now those efforts have been largely unsuccessful. In 2018, the European Central Bank (ECB) launched a project called TIPS, allowing for real-time payments within the eurozone. At the time, banks greeted the initiative with caution. But the news of Libra’s development was a “wake-up call,” said ECB board member Benoît Cœuré, and has renewed efforts to popularize the project. Like Libra, the ECB’s digital currency would not require financial intermediaries like commercial banks, which would cut transaction costs. News of the plan follows similar comments Thursday from French Finance Minister Bruno Le Maire, who said that country would not authorize Libra on European soil. Le Maire said the coin had the potential to abuse market dominance and threatened government monetary sovereignty.