France to block the development of Facebook's digital currency Libra

France to block the development of Facebook's digital currency Libra

Facebook cryptocurrency threatens national sovereignty, official says

France's Finance Minister says Facebook's crypto-currency can not be allowed in Europe.

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". So I want to say this with a lot of clarity: "I want to be absolutely clear: "in these conditions, we can not authorize the development of Libra on European soil." .

Le Maire said public authorities should rush to work on proposals for a "public digital currency", starting as soon as the International Monetary Fund meetings in October. And he expressed concern that the digital credits could facilitate money laundering and terrorism. Libra's plan also would do without financial intermediaries. We are about to get our approval, as a payment system, in Switzerland.

Unlike Facebook Libra, which is designed by the social media giant and controlled by a Zuckerberg-built consortium, Bitcoin is decentralized and operates without the need for a third-party.

He repeated his pleas for blocking Libra in Europe, and called for the creation of "a common framework" on digital currencies at the European Union level.

Euro zone governments and central banks are working on a long-term plan to launch a public digital currency that they hope would make redundant projects like Facebook's Libra, which is seen as a risk to financial stability, officials said on Friday. 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. The currency is created to be tracked by blockchain and backed by assets - fiat currency paid to purchase Libra that gets stored in a reserve for theoretical later redemption.

"I want us to have concrete projects available in the next few months", Le Maire 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.

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.

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