Facebook, already dealing with scrutiny and concerns from U.S. lawmakers about its plans for its Libra cryptocurrency, now is facing some hostility from financial corners in Europe.
At a financial policy forum in Paris, French Finance Minister Bruno Le Maire said France will move to block Facebook from developing Libra in Europe on the grounds that “the monetary sovereignty of (European) countries” is a stake if the tech giant is allowed to proceed with its cryptocurrency plans. According to a report in the British publication The Guardian, Le Maire said that with regards to Libra’s current status, there is no way France could support the cryptocurrency until concerns about risks to consumers and governmental financial institutions could be adequately resolved.
“I want to be absolutely clear: In these conditions, we cannot authorize the development of Libra on European soil,” Le Maire said.
Facebook introduced Libra in June by saying the digital currency would be backed by 28 companies, including Uber, Spotify, Visa and its own new subsidiary, Calibra, in a Switzerland-based group called the Libra Association. Those companies committed $10 million toward Libra’s development. At the time it announced the formation of the Libra Association, Facebook said a digital wallet allowing individuals to use Libra in Facebook’s app, Messenger and WhatsApp services would debut in 2020
However, almost from the start, Facebook’s cryptocurrency efforts were met with skepticism from some in Congress. In July, Treasury Secretary Steven Mnuchin spoke before Congress about the possibility of Libra being used for illegal activities online, and how it would be subject to governmental regulation.
There have also been reports of dissension among Libra’s backers, with some said to be considering dropping out of the project, or not wanting to be seen publicly backing Facebook’s cryptocurrency efforts.
