We can’t allow Facebook’s Libra in Europe: France
Facebook’s Libra cryptocurrency cannot be allowed to operate in Europe while concerns persist about sovereignty, systemic financial risks and the risk of abuses by a dominant market player, France’s finance minister said on Thursday.
The world’s largest social media network announced plans in June to launch the new currency as it expands into ecommerce but Libra has come under fire from regulators around the world who fear it could destabilise the global financial system.
The minister, Bruno Le Maire, did not spell out how France could keep Libra out of the 28-member European Union.
He also said he had been in touch with both the incoming and outgoing heads of the European Central Bank about setting up a “public digital currency” under the aegis of international financial institutions.
Talking about the Libra project at a meeting of the Organisation for Economic Co-operation and Development in Paris, Le Maire said: “This eventual privatisation of money contains risks of abuse of dominant position, risks to sovereignty, and risks for consumers and for companies.”
Dante Disparte, head of policy and communications for the Libra Association, said it welcomed the scrutiny and that it was committed to working with regulatory authorities.
“The comments today from France’s economy and finance minister further underscore the importance of our ongoing work with regulatory bodies and leadership around the world,” he said in a statement. (RTRS)