News 1231 items
France: We can't allow Facebook's Libra in Europe - Reuters (reuters.com)
PARIS (Reuters) - 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 e-commerce but Libra has come under fire from regulators around the world who fear it could destabilize 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 Organization for Economic Co-operation and Development in Paris, Le Maire said: “This eventual privatization 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.

Le Maire’s comments are the latest in a string of criticism about the project from policymakers and regulators from the United States to Europe.

The Group of Seven advanced economies warned in July that it would not let Libra proceed until all regulatory concerns have been addressed, saying that a prolonged discussion over the project may first be required.In another setback this week for the Geneva-based Libra, Switzerland said the proposed payments system could face strict rules that typically apply to banks, on top of tough anti-money laundering laws.

Libra has said it planned to apply to become a licensed payments system in Switzerland, which is not a member of the European Union.

“Libra also represents a systemic risk from the moment when you have two billion users. Any breakdown in the functioning of this currency, in the management of its reserves, could create considerable financial disruption,” Le Maire said.

“All these concerns about Libra are serious. I therefore want to say with plenty of clarity: in these conditions we cannot authorize the development of Libra on European soil.

”A Libra spokeswoman did not immediately respond to Reuters questions on whether it was seeking to be regulated or licensed by any countries in the European Union.

Reporting by Leigh Thomas in Paris; additional reporting by Tom Wilson in London; writing by Christian Lowe; editing by David Clarke

Our Standards: The Thomson Reuters Trust Principles.
    • 1
    Jakobo Gimeno a lot of people do not have a clear understanding of cryptocurrencies, because of how the media portrays cryptocurrencies people believe its a tool used to get rich fast and a way to get scammed on the internet. People want to get into crypto but tend to avoid it cause they are scared of getting scammed. However, with Libra people would feel safe cause they trust Facebook even tho Libra is not a proper crypto a lot of facebook users do not know this fact and would have brought into it. This would be a huge problem cause Libra would dominate the crypto market any person who would have given other cryptos a chance would end up going with Libra. Let's keep in mind that Facebook controls 83% of social media ad spending its bad to have a company with this much power to join the crypto market. I hope Libra does not get approved not only in the EU but everywhere else.
    • 2
    Francisco Gimeno - BC Analyst Libra as it is, even if it not a proper crypto, represents already a challenge for tradicional finance world. In this case, France, the EU, is not ready for it. And with good reasons, too. Unless all consequences are understood, it is very difficult that any Libra type of development be approved in many parts of the world.