EU plans to ban Facebook cryptocurrency

France, Italy and Germany are preparing measures to block Facebook’s Libra cryptocurrency. This was announced by French Minister of Economy Bruno Le Maire.

Libra cryptocurrency is not welcome in European countries … We will take measures together with Italy and Germany because our sovereignty is at stake” – AFP quoted him at the annual meeting of the World Bank and the International Monetary Fund.

He explained that Libra could affect the exchange rate of the dollar and the euro, which would directly affect the trade, industry and economy of countries that use these currencies as the main ones.

“Do we want to transfer monetary policy to a private company such as Facebook?” My answer is clearly no” – he stressed.

He noted that he is not opposed to France creating its own cryptocurrency “within the EU”, but against a private cryptocurrency controlled by one of the largest multinational corporations on the planet.

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Earlier, the American company-operator of electronic payment system PayPal refused to participate in the release of the Libra cryptocurrency. In addition, European regulators are skeptical about the project, fearing that cryptocurrency could threaten the financial system. So, on October 8, European Union finance commissioner Valdis Dombrovskis, speaking to EU lawmakers, promised to propose new rules for regulating cryptocurrencies in response to Facebook’s plans to launch Libra, which the EU considers as a threat to financial stability.

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