France calls on central banks to analyze the Libra cryptocurrency of Facebook.
The ambitious plans of the Facebook company to launch its own cryptocurrency have already achieved immediate political opposition in Europe, with calls for stricter regulation of the social networking giant. France was the first country to pronounce itself against the Libra cryptocurrency of Facebook.
Minister Frances Bruno Le Maire said that the cryptocurrency known as Libra should not be seen as a replacement for traditional currencies.
“It is out of the question that Libra becomes a sovereign currency.” Le Maire said in an interview to the radio Europe 1. “That can not and should not happen.”
The French minister called on the directors of the central banks of the G7 member countries, guardians of the international monetary system, to prepare a report on Facebook’s Libra cryptocurrency project for its July meeting.
Markus Ferber, a German member of the European Parliament, said Facebook, with more than 2 billion users, could become a “dark bank” and regulators should be on high alert for this. A “dark bank” becomes an institution that fulfills the functions of a bank, without being subject to the corresponding banking regulations.
“Multinational corporations like Facebook, should not be allowed to operate in a regulatory nirvana when they introduce virutal currencies,” Ferber said.
Facebook is developing Libra, a stablecoin designed to evade the volatility of bitcoin and be useful for commerce, in an alliance with some big names of payment platforms such as Visa, MasterCard and Uber. The new cryptocurrency will be launched next year and is anchored to a basket of fiat currencies and stable bonds.
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