On Thursday, France has warned that it will block the development of Facebook’s planned ‘Libra Cryptocurrency’ in Europe as it threatens the “monetary sovereignty” of governments.
At the opening of an OECD conference on crypto and virtual currencies, French Finance Minister Bruno Le Maire was quoted saying, “I want to be absolutely clear: in these conditions, we cannot authorize the development of Libra on European soil.”
He 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.”
“It would be a global currency, held by a single player, which has more than two billion users around the world. The monetary sovereignty of states is under the states is under threat,” added Le Maire.
He further argued that Libra would “substitute itself as a national currency” and would call into interrogate the independence of states and also could lead to significant financial disruption.
Le Maire continued, “I don’t see why we should dedicate so much effort to combating money laundering and terrorist financing for so many years to see a digital currency like Libra completely escape those regulatory efforts.”
He called on the financial sector, mainly banks, to reply to the Libra proposals and put ways to improve the quality of their international payments systems as well as reduce the cost of international payments.
Le Maire said that he is awaiting proposals for a public digital currencies from the OECD in the coming months.