France shares President Trump’s apprehension about Facebook’s Libra

A source in France’s Finance ministry has disclosed that France would take the same stance as made clear by President Trump’s tweets earlier today, reported Financial Times.

More specifically, the ministry shares the idea that allowing a private company to set up the equivalent of a national currency was a red line that cannot be crossed. The source said,

“We will not allow private enterprises to give themselves the attributes of state sovereignty… the means of monetary sovereignty.”

Further, the currency issued by a private entity will pose an unacceptable systemic risk, along with other problems like money laundering, terrorist financing etc. This is not the first government to oppose the media giant’s proposed Libra currency.

President Trump’s tweets have made the government’s outlook on Bitcoin and other cryptocurrencies clear, and it might also pave the way for other leaders of the world to make a decision.

The digital currency has been facing a lot of flak since it put out the whitepaper on Jun 18. First, it was the Bitcoin and crypto-community arguing if this was a good thing for Bitcoin, or a bad thing. U.S. and EU regulators expressed concern after this, which was followed by a hearing before U.S. Representatives, who issued a statement asking Facebook to halt any and all developments until further notice.

Further, this statement by the ministry comes out as French Finance Minister Bruno Le Maire prepares to host a meeting of his G7 counterparts next week, where the issue of cryptocurrencies and cybersecurity will be discussed.

Among the countries that have clearly opposed Facebook’s Libra is India, which is yet to substantiate on its stance on cryptocurrencies. Some sources had made clear previously that India will also be not entertaining Libra.