France has said it will block the development of Facebook ’s Libra
cryptocurrency as it poses a threat to “monetary sovereignty”.
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.”
Facebook’s Libra cryptocurrency was announced earlier this year and is set to launch at some point in 2020. Despite Libra having certain technological similarities with bitcoin, its creators hope that its more centralised infrastructure will allow it to become a global currency that could rival the US dollar.
Libra is designed to allow people to make payments across Facebook’s suite of apps, including WhatsApp and Facebook Messenger, which are used by billions of people around the world.
The cryptocurrency has been developed alongside some of the world’s biggest payment companies but has faced significant regulatory scrutiny in the US, UK and Europe.
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Libra chief David Marcus gave evidence in July before the US Senate Committee on Banking, Housing and Urban Affairs , with senators telling him that Facebook “doesn’t deserve our trust” and “should be treated like the profit-seeking corporation that it is”.