Paris, Rome, and Berlin are getting ready to block Facebook’s new digital currency Libra in Europe, a French minister said, as cited by AFP.
Last month, France’s Finance Ministry said that the technology developed by the social media giant causes serious concerns and therefore its operation cannot be authorized for use on European soil.
French Finance Minister Bruno Le Maire said the project could pose financial risks for the EU, including to the sovereignty of other nations’ currencies, and has the potential for abuse of market dominance.
Leading European economy Germany has been supporting France in its drive to block the digital coin. In a joint statement issued in September, Berlin and Paris stressed that “no private entity can claim monetary power, which is inherent to the sovereignty of nations.”
On Thursday, a G7 working group warned that no stablecoins – digital coins, such as Libra, which are backed by traditional currencies – should be launched globally until “the legal, regulatory and oversight challenges and risks” are addressed.