min to read

2019-09-12 17:33:23




News

According to minister of finance France will block the development of libra in europe

France vs Libra

min to read

2019-09-12 17:33:23

French Finance Minister Bruno Le Maire said Facebook’s digital Libra threatens the monetary sovereignty of countries.

French Finance Minister Bruno Le Maire said Facebook’s digital Libra threatens the monetary sovereignty of countries. Its development in Europe will not be allowed, the official said at an OECD conference.

 

“I want to make clear: we cannot allow the development of Libra in Europe in current conditions,” France 24 quotes Le Maire.

 

Le Maire noted that Libra carries systemic risks, as Facebook has more than 2 billion users worldwide. Any failure in the network, in his opinion, will lead to serious financial shocks.

 

The minister expressed concern about the ability of Libra to replace national currencies in countries with significant devaluation, and also did not forget to mention the risks of terrorist financing.

 

Analysts have already pointed out that France has no direct leverage over Switzerland, where the Libra Association consortium is registered. It may probably refer to blocking any applications working with Libra on the territory of the country itself and the ban for merchants to work with digital currency.

 

Today, in an interview with Neue Zürcher Zeitung (NZZ), Mark Branson, chief executive officer of Swiss financial regulator FINMA, said that Switzerland is open to coordinating Libra regulation internationally. He added that other countries do not have to put pressure on the agency, because it is aware of the scale of the Facebook project.

 

It should be reminded that Facebook intends to launch Libra in the first half of 2020.

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