France Blocking Facebook Libra in EU Shows True Power of Bitcoin

France vows to block Facebook Libra before it even gets started

France vows to block Facebook Libra before it even gets started

Facebook's libra proposal has rattled policy makers around the world since its planned launch was announced in June.

But plans unveiled in June by US social media giant Facebook to launch its own digital currency, Libra, for payments among its hundreds of millions of users in Europe and around the world have triggered a rethink.

"We also need to step up our thinking on a central bank digital currency", he added, unveiling a so-far little known plan.

France's rejection of Libra follows guidelines published Wednesday by the Swiss Financial Market Supervisory Authority FINMA that acknowledge a request from the Libra Association for an assessment of the project's legality in Switzerland. So I want to be very clear: "in these conditions we can not authorise libra's development on European soil", the French finance minister said.

"I want us to have concrete projects available in the next few months", Le Maire said.

While speaking at an OECD conference focused on crypto in Paris today, French Finance Minister Bruno Le Maire expressed "serious" concerns over Facebook Libra - a fiat-backed stablecoin the social media platform seeks to launch with the support of other major corporations - and revealed that his country would seek to block Facebook Libra from ever seeing the light of day in Europe. Perez maintained that Libra association was in constant dialogues with regulators and central banks.

Le Maire said the bloc should also work to cut the cost of global payments, which Libra promises to slash. Exchanges and money transmitters, however, still have to comply with bloc-wide European Union anti-money-laundering regulations. It includes a warning that the coin scheme will face more scrutiny than usual because it aims to go beyond being a mere payment system. Tiny Malta, which already hosts the bloc's largest online gambling industry and an outsized finance sector, has devised its own framework to attract virtual currency operators.

Le Maire is opposed to Facebook Libra due to viewing it as a threat to "monetary sovereignty".