France says it will block Facebook's Libra cryptocurrency in Europe

Marco Green
September 14, 2019

Libra, as now proposed by the tech giant, would raise concerns about market dominance, threaten the sovereignty of states, increase risks for consumers and business, and could even cause significant global financial disruption, Le Maire said at Organisation for Economic Cooperation and Development in Paris.

Among the list of concerned governments is France, whose Finance Minister just revealed that it would work to prevent the "development of Libra on European soil".

As previously reported by Hard Fork, Le Maire said Libra posed systemic financial risks, risks for sovereignty, and the potential for abuse of market dominance associated with Facebook's cryptocurrency.

Federal Reserve Chairman Jerome Powell on Facebook's cryptocurrency plans. And he expressed concern that the digital credits could facilitate money laundering and terrorism. However, that isn't stopping the coin's regulator, The Libra Association from applying for a payments license in Switzerland.

So far, the social media giant's plan to launch Libra has been met with skepticism.

However, the non-profit Libra Association - made up of a consortium of companies to develop and manage Libra - will need to agree.

Many argue that because Bitcoin isn't backed by assets like gold or fiat currencies, it doesn't have any inherent value.

The Register asked Facebook for comment and our request got kicked to the Libra Association, which didn't immediately respond.

Work on the European Central Bank project started before the launch of Libra and could last months or even years, Coeure said.

But, she argues, concerns about the misuse of Libra for unlawful activity - something Facebook's David Marcus has said Libra aims to make more hard, not less - miss the project's primary aim.

As per a statement from Perez however, Facebook is not seeking to create new stores of money via its token.

In related news this week, Google has been fined €500 million by French regulators and has agreed to pay €465 million in backdated taxes to settle a tax-related investigation from 2016.

Other reports by Click Lancashire

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