France and Germany opposed Libra

Cryptocurrency Facebook can encounter problems.

France and Germany said that the Libra cryptocurrency, which Facebook is working on, poses a threat to the financial stability of the sector. This may make it impossible to use Libra in Europe, World News reported.

Virtual currencies pose a risk to consumers, financial stability and even the “monetary sovereignty” of European States, French Finance Minister Bruno Le Maire and his German counterpart Olaf Scholz said in a joint statement at a meeting of EU Finance Ministers in Helsinki.

“France and Germany believe that the Libra project, as presented in the Facebook plan, does not convince that these risks are given due attention,” they said. They also warned that the EU states are ready to resort to strict regulation if an attempt is made to obtain permission to use Libra in Europe.
France and Germany also supported the creation of an alternative public cryptocurrency. Earlier, the European Central Bank said it was developing a long-term plan for the introduction of a public digital currency, which could make projects such as Libra unnecessary.

In June, Facebook announced plans to launch Libra – for financial transactions between hundreds of millions of users of the social network.

Author: Flyn Braun
Graduated from Cambridge University. Previously, he worked in various diferent news media. Currently, it is a columnist of the us news section in the Free News editors.
Function: Editor