France proposes to create a state digital currency in the EU

France proposed creating the EU’s own state digital currency and prohibiting the use of Facebook – Libra cryptocurrency in the EU in order to protect its financial sovereignty – said French Finance Minister Bruno Le Maire on arrival at an informal meeting of EU economic and finance ministers in Helsinki.

“We should study the best ways to reduce the cost and increase the speed of international transactions, both within the EU and outside it. Therefore, I (proposed to the Eurogroup) to create a state digital currency, it will also be considered at the next IMF meeting in October in Washington” – said Le Maire.

“We have proposals for digital currencies. There is a proposal from Facebook, its so-called cryptocurrency Libra. In the current conditions, we must ban Libra’s support in the EU. It is about consumer safety, the stability of European finances and the sovereignty of EU states” he said.

Facebook announced in June the plan to release its own Libra cryptocurrency next year. According to company representatives, making a digital currency transfer will be as simple as sending a text message to the phone. The functioning of the new currency will be based on blockchain technology – a decentralized database, the storage devices of which are not connected to a common server.

A number of major US corporations, including Visa, Mastercard, PayPal and Uber, intend to invest $ 10 million each in creating a consortium that will be managed by Libra. At the same time, a number of official representatives of the leadership of various countries, including US President Donald Trump, as well as national banks expressed concern that this form of financial transactions could contribute to crime.

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