France Finance ministry, which is in charge of regulating the financial sector, and the central bank have agreed that Facebook could not pursue its project because it presents a "threat to the fiscal sovereignty" of the country.Facebook is currently conducting research on developing its own cryptocurrency and has asked other developers to join in as well, but it has received mixed reactions from investors.
It is therefore clear where Libra, the crypto-currency, falls within this evolving ecosystem. While it is certainly a powerful tool for its creator, it has no clear regulatory precedent. That's what the French government wants to rectify via legislation.
The French minister also called for more cooperation within Europe to prevent future crises – a common set of financial rules and regulation.
In other words, Le Maire is telling the European authorities that they should be the ones to decide what currencies people use and that they must make the decisions that benefit their citizens.
At the opening of an OECD conference on cryptocurrencies, French economy and finance minister Bruno Le Maire said: “I want to be absolutely clear: In these conditions, we cannot authorise the development of Libra on European soil.”
Libra's goal is to offer a stable and less volatile alternative to traditional financial markets. The cryptocurrency will be available in a digital currency wallet that you can import onto your smartphone. Libra is also using a Proof of Stake (PoS) algorithm which should offer higher security while keeping the reward of a transaction constant.The Libra cryptocurrency is intended to be used as payment for certain types of financial services. But unlike other currencies, the Libra token can also be exchanged for existing cryptocurrency by anyone.