France urges EU rules on cryptocurrencies, warns of Libra risks

Libra won't 'play at being pirates'

Libra won't 'play at being pirates'

So I want to say this with a lot of clarity: "I want to be absolutely clear: "in these conditions, we can not authorize the development of Libra on European soil." .

Speaking before 28 European leaders at Helsinki, Le Maire also reportedly reiterated concerns over Facebook's planned Libra cryptocurrency, which he said yesterday threatened "monetary sovereignty".

It goes without saying that Facebook's "cryptocurrency" hasn't had it easy so far. Facebook's Calibra is the newly formed subsidiary that plans to introduce a digital wallet for Libra in 2020.

Cryptocurrencies are based on decentralised technologies called distributed ledgers.

Furthermore, Perez also confirmed that Libra would upon launch be tied to several major world currencies but not the Chinese yuan.

Mark Carney floated the idea of a cryptocurrency backed by central banks
Mark Carney floated the idea of a cryptocurrency backed by central banks

"Certainly the bar set for regulatory approval will be very high", Coeure, who is a Frenchman and will end his European Central Bank mandate at the end of the year, said.

Libra, as now proposed by the tech giant, would raise concerns about market dominance, threaten the sovereignty of states, increase risks for consumers and business, and could even cause significant global financial disruption, Le Maire said at Organisation for Economic Cooperation and Development in Paris. Reports suggest that the tech giant is hoping the euro, Singapore dollar, Japanese yen, British pound, and United States dollar will be among the first currencies to support the firm's virtual coin.

However, the non-profit Libra Association - made up of a consortium of companies to develop and manage Libra - will need to agree.

Euro zone governments and central banks are working on a long-term plan to launch a public digital currency that they hope would make redundant projects like Facebook's Libra, which is seen as a risk to financial stability, officials said on Friday. Current backers include PayPal, Visa, Stripe, Mastercard, eBay, and Uber.

But government officials say the crypto-currency could destabilize the global financial system and cause personal data breaches, among other problems. Or is this so new that a whole new way of regulating needs to be invented?

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