France to refuse Facebook's Libra in Europe

The France finance minister, Bruno Le Maire, said that Facebook's Libra cryptocurrency cannot be allowed to operate in Europe while concerns persist about sovereignty, systemic financial risks and the risk of abuses by a dominant market player. Le Maire did not elaborate on how to spell out how Libra should be kept out of the EU, reports Reuters.

In June, Facebook announced its plans to launch the new currency as it expands to e-commerce. Since then, Libra has come under fire from regulators around the world. Le Maire’s comments are the latest in a string of criticism about the project from policymakers and regulators from the United States to Europe. These regulators fear it could destabilise the global financial system. Le Maire said he had been in touch with both the incoming and outgoing heads of the European Central Bank (ECB). They discussed to set up a 'public digital currency' under the aegis of the international financial institutions.

Ongoing concerns

Libra association's head of policy and communications, Dante Disparte, reacted by welcoming the scrutiny and that the company is committed to working with regulatory authorities. "The comments today from France’s economy and finance minister further underscore the importance of our ongoing work with regulatory bodies and leadership around the world,” he said in a statement.

Back in July, the Group of Seven (G7) advanced economies warned that it would not let Libra proceed until all regulatory concerns have been addressed. The group stated that a discussion over the project may first be required.