Libra: France refuses the development of Facebook’s cryptocurrency “on European soil”

French Government refused the development of Libra Facebook cryptocurrency on european soil

(AFP) It has only been three months since Facebook announced Libra, its digital currency or cryptocurrency. However, it has been enough for different organizations to open investigations and express great doubts about their viability and operation.

After US lawmakers, and European Union antitrust regulators, the French government chaired by Emmanuel Macron has announced that it will block the development of Libra Facebook’s cryptocurrency “on European soil”, according to the  AFP news agency.

The news does not include any in-depth arguments about the reasons that would lead to the blockade, but from the agency they gather that the main argument is that it threatens “the monetary sovereignty” of the States.

Bruno Le Maire, Minister of Economy: “We cannot authorize the development of Libra on European soil”

In a speech delivered at the opening of a conference of the Organization for Economic Cooperation and Development (OECD), Bruno Le Maire, Gallic Minister of Economy, said that “it is these conditions, we cannot authorize the development of Libra in European soil, “adding that” the monetary sovereignty of states is at stake. “

According to Le Maire, there are great potential risks with Libra, whose scenario and implementation is considered “a possible privatization of a currency, in the hands of a single actor with more than 2 billion users on the planet.” The French politician has also expressed that “any failure in the operation of this currency, in the management of its reserves, could create considerable financial disorders.” He also pointed out that Libra could replace the native currency of states where currencies are heavily devalued, such as Venezuela.

With the announced creation in mid-June of a digital currency offering an alternative payment method to traditional banking channels, Facebook wants to upset the global financial system. Inspired by crypto-actives like bitcoin, it must be run by a non-profit consortium. The project nevertheless raises serious concerns from central bankers, politicians and regulatory authorities, particularly with regard to risks to financial stability.