France Seeks to Block Development of Libra in Europe

Lucas Cacioli  Sep 13, 2019 13:00  UTC 05:00

2 Min Read

France plans to block the development of Facebook Libra in Europe citing concerns over consumer risk and monetary sovereignty according to a report by The Guardian on September 12.

While speaking at a recent conference in Paris on virtual currencies, Bruno Le Maire, French Finance Minister said, “In these conditions, we cannot authorise the developments of Libra on European soil."

When Facebook unveiled its plans for Libra in June, experts immediately came forward—warning that the cryptocurrency could shift control over the economy from governments and their central banks to big business.

Herbert Sim, Head of Business Development, Broctagon Fintech Group told Blockchain.News that France’s rejection of Libra is symptomatic of countries feeling threatened by a viable alternative to fiat currency. Sim said, “Libra represents the first stable digital currency which could be a feasible alternative for the mass market—it's no wonder France feels threatened. And they're not the only ones responding in the same way, countries like the US and India seem to be actively working against crypto.” He continued, "At the same time, others are throwing themselves into the race, with China advocating for Bitcoin and creating its own digital currency. It's clear that some are recognising the opportunity cost of dismissing the crypto market.

Sim highlighted that the announcement of Libra has had little impact on the Bitcoin price and believes it is a positive indication for the cryptocurrency market. He said, “It's interesting that Bitcoin prices haven't really shifted since the announcement. It seems prices are becoming less dependent on the actions of central authorities. This is a positive sign for the crypto markets. As we look set for a global recession, we could see the previous "Wild West" of the investment world become a safe haven."

Image via Shutterstock

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