Europe Is Prohibiting Facebook’s Libra Digital Coins

The idea of fb.com (facebook) to introduce its digital coin, Libra, faces inspection. It is some of the world’s largest financial institutions that have ordered the scrutiny.

According to the news reports, spokespersons from the Libra Association will come together with representatives from 26 of the world’s central banks in Bazel, Switzerland.

This Monday the talk over the digital coin’s “scope and design” will come to a place.

The incident lmade finance ministers in the EU worried regarding Libra. This is with the reason that could weaken the authority of government banks and disrupt finance sectors.

In that event, both Germany and France have previously fought for a sanction on the currency in Europe. This is in an effort to prevent the possible effect of Libra on the EU’s financial system.

Meanwhile, the Libra Association accepted the arrangement. They also indicated that they had “deliberately designed a long launch runway to have conversations, educate stakeholders, and incorporate their feedback in our design.”

Facebook proposes the Libra coin as a way of performing transactions across borders. This is primarily in emerging countries with limited access to financial services and institutions.

The layout would make the cryptocurrency independent of any single country’s monetary policy.

French Finance Minister’s Preference for the Prohibition

Facebook is no outsider to the controversy. In fact, the company faces multiple anti-trust investigations in the US. In addition, this is in regards of protecting its users’ data and competition procedures.

Elsewhere, Facebook’s Libra will be blocked in Europe. This is due to the digital coin is too risky, and it threatens sovereignty.

On Thursday, the French Finance Minister Bruno Le Maire informed the banning. Due to his encouragement for governments to work on their own public version.

Moreover, as Libra is currently planned by the tech giant, it would raise concerns about market dominance. The digital coin will also threaten the sovereignty of states, increase risks for consumers and business.

Le Maire even said at an Organization for Economic Cooperation and Development in Paris that Libra could also cause significant global financial disruption.

In addition, Le Maire also stated that public authorities should rush to work on proposals for a “public digital currency.”

This should be starting as soon as the International Monetary Fund meetings in October.

He already said that he had talk over the idea with European Central Bank President Mario Draghi together with his successor Christine Lagarde.

“I want us to have concrete projects available in the next few months,” Le Maire stated.