The new digital currency Libra that Facebookappears to face more obstacles than the social networking company may have anticipated.
Earlier, UK Treasury Secretary Steven Mnuchin argued that cryptocurrencies like the upcoming Libra pose a “national security risk” and could be exploited for illegal activities.
And now, France’s Finance Minister Bruno Le Maire has said that Libra could potentially jeopardize the national sovereignty of governments. Therefore, it cannot be allowed on “European soil.”
“All these concerns around Libra are serious. So I want to say it very clearly: under these circumstances, we cannot approve its development,” Le Maire said at the OECD conference in Paris on Thursday.
Le Maire has been a vocal opponent of the digital currency and has repeatedly expressed his views on Facebook's new venture since it was announced in June. Previously, Maire had said that the country would not accept the digital currency until it was regulated by certain basic rules.
Instead, Facebook has argued that the controlling power will be in the hands of the Libra Association. Based in Switzerland, the association is made up of 27 members, including Facebook, PayPal, Visa, Mastercard and other companies.
In response to Le Maire's statements, the head of the Libra Association, Dante Disparte, said: "The Libra Association and its members are committed to working with regulators to achieve a secure, transparent and consumer-focused implementation."
He also said that Facebook's Libra project has become one of the "most thoroughly scrutinized efforts ever made in the world.".
But with France considering blocking Libra from the country, it would be a huge blow to the tech and its goal of “easy money transfer” across the world.
