Published: Sat, September 14, 2019
Finance | By Kristine Clayton

France vows to block Facebook's Libra crypto before it even gets started

France vows to block Facebook's Libra crypto before it even gets started

LEGAL LIMBO Meanwhile, European Union authorities are sending Facebook a clear message that Libra is not welcome in Europe.

Announcing the move, French France's finance minister, Bruno Le Maire, said: "I want to be absolutely clear: in these conditions, we can not authorise the development of Libra on European soil", citing the potential of cryptocurrencies and particularly Libra, to threaten the "monetary sovereignty" of governments.

The head of the Libra Association, the nonprofit entity behind Facebook's forthcoming Libra cryptocurrency recently stated that the company is committed to launching the stablecoin and clearing all regulatory obstacles.

While speaking at a conference in Paris, Le Maire said: "I want to be absolutely clear: in these conditions, we can not authorise the development of Libra on European soil". The prevent any interference with its value, the coin will be regulated and monitored by the Libra Association, a subsidiary that is free of Facebook and includes financial organisations.

Cryptocurrencies are based on decentralised technologies called distributed ledgers. Who is going to regulate Facebook's banking offerings?

Furthermore, Perez also confirmed that Libra would upon launch be tied to several major world currencies but not the Chinese yuan. Reports suggest that the tech giant is hoping the euro, Singapore dollar, Japanese yen, British pound, and U.S. dollar will be among the first currencies to support the firm's virtual coin.

The Libra Association hopes to make Libra available by June 2020.

Among these worries are how Facebook would tackle money laundering, the potential funding of terrorism, and whether the transition of currency control from governments to private businesses could cause economic destabilization. Facebook allegedly knew of the scheme months before the data leak was made public.

Also in France on Thursday, Google has agreed to pay a €500m ($554m) fine €465m ($515m) and to settle a four-year old tax fraud probe, according to Reuters.

Like this: