France wants to ban Facebook cryptocurrency in Europe

Sep 13, 2019


A lack of confidence expressed more than once by France could eventually lead to a ban on Facebook cryptocurrency across Europe. That is what Bruno Le Maire, the French minister of the economy, said at a conference on virtual currencies, said, in all words, that his government will work to ban the Libra throughout Europe.

According to him, the launch of the network's virtual currency poses a major threat to the bloc's economic stability. Le Maire says the risks of using the Pound are too great and that, conversely, there is not enough trust in Facebook to do the right thing, which makes applying the financial modality a very risky gamble.

The minister cited a systemic risk in using a privatized currency controlled by a single company, but with a reach of two billion people worldwide. A security breach, a problem in the financial reserves or any unavailability, in the politician's view, would have serious consequences for the whole not just European but also global financial system.

In addition, for him, recurring concerns about Bitcoins, Ethers, and so many other cryptocurrencies also apply to Libra, with this private control and information control by Facebook leading to the use of money to finance illicit acts, money laundering. or terrorism. Once again, he cites a lack of confidence in Facebook's moderation and control, just as it does so often with the social network itself, which demonstrates a difficulty dealing with unacceptable speeches on its platform.

Speaking at an OECD conference, the Organization for Economic Development and Cooperation in Europe, Le Maire gave no details of the ways the French government will use to attempt a ban on Libra across Europe. The main alternative would be to contact the European Union's financial regulators, who in themselves have already expressed their doubts not only about Facebook currencies themselves, but about the financial digital market as a whole.

Nor is it the first time the French government has expressed concerns about the Pound. During the G7 meeting at the end of August, Le Maire had already said that France would oppose the application of cryptocurrency, precisely because it lacked the solidity and confidence it needed, far from state control. At the time, the minister said he did not understand why the same safeguards imposed on other forms of digital money cannot be applied to the Pound as well.

France is the most vocal country in its predicament, but Facebook's currency also faces challenges in the United Kingdom and the United States. The social network has not commented on Le Maire's new statements, but in the past, it has countered such statements claiming it is not the sole parent of Libra, whose governance should be done by a group of 28 organizations united under Calibra, which has headquarters in Geneva, Switzerland.

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