France to block development of Facebook’s Libra digital currency in Europe

France to block development of Facebook’s Libra digital currency in Europe

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If you are into cryptocurrencies, chances are that you would have known about Facebook’s Libra aka GlobalCoin by now. Ever since the social media giant shared plans of Libra, a few months back, it has dealt with a flood of criticism from people all over social media and forums.

France to block Libra!

Recently, France has also joined the list of countries opposing social media giant’s Libra cryptocurrency. France’s economy and finance minister, Bruno Le Maire has spoken against Facebook’s effort in cryptocurrency, saying that it (Libra) could pose financial risks and could be open to abuse.

In a meeting of the Organisation for Economic Co-operation and Development, in Paris, Mr. Le Maire said: “This eventual privatisation of money contains risks of abuse of dominant position, risks to sovereignty and risks for consumers and companies.”

Facebook’s digital currency poses various threats!

Mr. Le Maire also hinted about setting up a public digital currency under the aegis of international financial institutions. Furthermore, he pointed out various reasons, including systemic risk, security and privacy concerns, and other management issues as well.

Mr. Le Maire added, “All these concerns about Libra are serious. I, therefore, want to say with plenty of clarity: in these conditions, we cannot authorise the development of Libra on European soil.”

No decentralisation! 

Unlike other cryptocurrencies, Libra would not be decentralised, and the control would be given to Switzerland-based non-profit association. Responding to Mr. Le Maire, the European Commission said that it would look at all aspects of Libra as well.

France, the U.S, and the U.K. on the same page!

France is not the first country to oppose or criticise the development of Libra. The U.S. has already asked the company to suspend the development of Libra. Many U.S. officials have said that Libra threatened the U.S. financial system.

India and China are planning to block crypto! 

On the other hand, the U.K. raised similar concerns about Facebook’s attempts to create its currency. Additionally, Switzerland wants to subject Libra to strict oversight, for example, and many regulators haven’t discussed Libra at all, according to the Bloomberg report. Other countries like India and China are planning to block the cryptocurrency outright as well.

Facebook’s Libra!

On June 18, 2019, Mark Zuckerberg’s Facebook announced Libra, virtual currency, or cryptocurrency. According to the white paper, Libra’s mission is to enable a simple global currency and financial infrastructure that empowers millions of people. The social media platform wants this to become a global currency, especially in developing countries that have no access to banks or financial services.

Libra Association

It’s worth mentioning here that the Libra will be governed by the Libra Association, a Swiss group including 28 members. Among which are Facebook subsidiary Calibra, Uber, PayPal, Mastercard, Visa, Spotify, and several reputed names in technology and finance.

Do let us know your thoughts about Libra in the comment section below.

Stock Photos from Ascannio/Shutterstock

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