France sees Facebook’s Libra as a threat to governments’ sovereignty

France objected to Facebook’s Libra’s entry in the European market as it was sceptical that the cryptocurrency would pose a serious threat to the sovereignty of the bloc’s governments. 

French Finance Minister Bruno Le Maire said (as per CNBC’s translation), “All these concerns around libra are serious. So I want to say this with a lot of clarity: In these conditions, we cannot authorize the development of libra on European soil.”

Le Maire has always been very critical of Libra, which was launched by the social media giant in June this year. In Le Maire’s view, the digital currencies lack strict regulation, which makes them an easy channel be used for money laundering, terrorism financing and market dominance.  Le Maire view of Libra is seconded by many traditional currency regulators across the world, who are sceptical over the digital currency’s authenticity.

Le Maire added that during is a conversion with both the ECB Presidents (outgoing) Mario Draghi and (soon-to-be) Christine Lagarde, on Thursday, about creating a “public digital currency.”

In reply to LeMaire’s doubt over Libra, Dante Disparte, Head of Policy and Communications for the Libra Association, said that Libra by far has become “the world’s most scrutinized fintech effort.”

He said, “We welcome this scrutiny and have deliberately designed a long launch runway to have these conversations, educate stakeholders and incorporate their feedback in our design. The Libra Association and its members are committed to working with regulatory authorities to achieve a safe, transparent, and consumer-focused implementation of the Libra project. We recognize that blockchain is an emerging technology and that policymakers must carefully consider how its applications fit into their financial system policies.”   

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