Facebook’s Libra cryptocurrency will be BANNED in Europe, France says
FRANCE has come out guns blazing against Facebook's sinister foray into cryptocash.
One of the country's top ministers has promised to ban Facebook's virtual currency Libra in Europe ahead of its launch next year.
Libra, unveiled in June, will allow people to move money from their smartphone into a digital "wallet".
It's been met with heavy criticism, with one cyber security expert branding the cryptocurrency "Facebook's most invasive and dangerous form of surveillance yet".
Now, France's finance minister has warned that Libra cannot be allowed to operate in Europe.
He said the project poses a threat to the "monetary sovereignty" of nations across the continent.
The minister, Bruno Le Maire, did not spell out how France could keep Libra out of the 28-member European Union.
He also said he had been in touch with both the incoming and outgoing heads of the European Central Bank about setting up a "public digital currency".
Talking about the Libra project at a meeting of the Organisation for Economic Co-operation and Development in Paris, Le Maire said: "This eventual privatisation of money contains risks of abuse of dominant position, risks to sovereignty, and risks for consumers and for companies."
The world's largest social media network announced plans in June to launch the new currency as it expands into e-commerce.
But Libra has come under fire from regulators around the world who fear it could destabilise the global financial system.
The Group of Seven advanced economies warned in July that it would not let Libra proceed until all regulatory concerns have been addressed, saying that a prolonged discussion over the project may first be required.
"Libra also represents a systemic risk from the moment when you have two billion users. Any breakdown in the functioning of this currency, in the management of its reserves, could create considerable financial disruption," Le Maire said.
What is a cryptocurrency?
Bitcoin got you baffled? Here's what you really need to know
- A cryptocurrency is a virtual currency
- Examples include Bitcoin and the new Facebook-led coin "Libra"
- It's traded between people without the help of a bank
- Every transaction is recorded in a public ledger, or 'blockchain'
- Crypto cash is created by mining
- Mining involves solving difficult maths problems using computer processors
- Coins can be traded anonymously, which makes them a popular way of funding illegal activities
- A single Bitcoin is worth over £7,000 today, but the value fluctuates wildly
"All these concerns about Libra are serious. I therefore want to say with plenty of clarity: in these conditions we cannot authorise the development of Libra on European soil."
In another setback this week for Libra, Switzerland said the proposed payments system could face strict rules that typically apply to banks, on top of tough anti-money laundering laws.
Facebook's Libra plan has had to battle a sea of critics since it was announced in June.
Phil Chen, Decentralized Chief Officer at HTC, said the move was part of a "dangerous" power grab by Facebook.
"If you’re concerned with Facebook knowing too much or having too much access to your private data or social graph, the GlobalCoin will give Facebook even more direct access to your financial information," he told The Sun.
"It’s not just access to the information of your transactions, it’s direct access to your wealth and capital.
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In other news, a "Bitcoin city" is being built in Malaysia where people will only be able to use cryptocurrencies.
Earlier this year, more than £100million in digital cash went missing from a dead Bitcoin trader's laptop.
And, Britain’s first "Bitcoin Baby" earned £3,000 in just two weeks thanks to hundreds of crypto-donations in January.
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