France wants to ban Libra, Facebook’s cryptocurrency, in the European Union | Business

Facebook faces many difficulties to implement Libra. The cryptocurrency already has a strong rejection of regulators in the United States, which demanded the suspension of its launch. France now defends its ban in the European Union.

Facebook Libra

At a meeting on blockchain at the OECD (Organization for Economic Cooperation and Development), French Finance Minister Bruno Le Maire argued that Libra should be banned on the continent because of threats to security and financial stability in the region.

“I want to be absolutely clear: under these conditions, we cannot authorize the development of Libra on European soil,” he said. For Le Maire, the cryptocurrency will challenge the independence of the countries of the European Union. “The monetary sovereignty of the states is at stake”.

According to Le Figaro, the authorities fear that Libra will contribute to crimes such as money laundering and tax evasion or that it will be used to finance terrorist groups. There are also doubts about the risks that could arise from failures in the functioning of the cryptocurrency.

It is not yet clear which mechanism the European Union would use to ban Libra. However, the 19 countries that make up the bloc agree to adopt a strict approach, which should affect other cryptocurrencies.

EU discusses public cryptocurrency

Amid criticism of the Libra, Eurozone countries are studying the creation of their own cryptocurrency. The group has been analyzing ways to facilitate digital payments for years. The Facebook announcement prompted discussions to resume.

The current proposal is to encourage the use of TIPS, a real-time payment service launched in 2018 by the European Central Bank. Like Libra’s proposal, it allows users to have digital accounts without banks or intermediaries.

According to Reuters, the French minister defended the creation of a European cryptocurrency and promised to discuss the matter with representatives of other countries in the bloc. Meanwhile, Libra is still in development.

Announced in June, Facebook’s currency will be regulated in Switzerland. It will be managed by Libra Asssociation, a group of 28 companies that includes brands such as Visa, Mastercard, PayPal, Uber, Lyft, Spotify, eBay, Mercado Pago and Calibra, Facebook’s new subsidiary for financial services.

With information: VentureBeat.

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