French Finance Minister Bruno Le Mayor said Facebook’s digital Libra threatens the monetary sovereignty of states. Its development in Europe will not be allowed, the official stressed at the conference OECD.
“I want to express myself very clearly: we cannot allow the development of Libra in Europe under the current conditions”, – quotes Le Mayor France 24.
Le Mayor noted that Libra carries systemic risks, as Facebook has more than 2 billion users worldwide. Any failure in the network, in his opinion, will lead to serious financial shocks.
The minister expressed concern about the ability of Libra to replace national currencies in countries with significant devaluation, and also did not forget to mention the risks of terrorist financing.
Analysts have already pointed out that France has no direct leverage over Switzerland, where the Libra Association consortium is registered. Probably, this is about blocking any applications working with Libra on the territory of the country itself and the ban for merchants to work with digital currency.
Today, in an interview with Neue Zürcher Zeitung (NZZ), Mark Branson, director of Swiss financial regulator FINMA, said Switzerland is open to coordinating Libra regulation internationally. He added that other countries do not have to put pressure on the agency, because it is aware of the scale of the Facebook project.
Recall, Facebook intends to launch Libra in the first half of 2020.
David Marcus, CEO of Calibra, spoke more about the project at a U.S. Congressional hearing.
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