Recently, France said that it is going to block the development of Libra by Facebook in Europe. By the looks of it, this is a fresh blow to Facebook as the social media giant is trying to make its way into the cryptocurrency market.
Bruno Le Maire, the finance minister of France, said that his plans for Libra could not move ahead. On the other hand, the finance minister also said that there are a few things that Facebook needs to do. The finance minister also said that he could not greenlight the development until the monetary and consumer risk is dealt with.
France would block Libra development in Europe
On Thursday, Le Marie spoke at a press conference in Pairs concerning the virtual currencies. Le Maire said that he wants it to be clear about the condition concerning cryptocurrency such as Libra. In addition to this, Le Marie also did say that France cannot give the authorization to develop Libra on the European soil.
The social media giant did unveil his plans for the in-house cryptocurrency Libra back in June 2019. Soon, there were several warnings from the financial experts from across the world. The experts said that this has the potential to shift the control of the economy from various governments as well as their central banks and big businesses.
The launch did also raise several concerns and risks regarding the cryptocurrency concerning the consumer, mainly after the infamous scandal. The scandal of Cambridge Analytica drew a significant amount of attention to the management of Facebook concerning the data of the customers.
Facebook even had an active role in spreading fake news & the extremist videos, which did garner attention. The investors of the significant other cryptocurrencies such as Bitcoin did go through significant losses by placing distinctive bets. Some of the cryptocurrency investors were also subjected to the hacks by the bad factors.
Is it a bad time for Libra
Facebook did design its cryptocurrency to be free from the market volatility and hacks that Bitcoin went through. In addition to this, Facebook also said that it would launch the cryptocurrency Libra in the first half of 2020. Libra will not have the fundamental core value of the several other cryptocurrencies, i.e., decentralization. Instead, Libra will be a completely centralized cryptocurrency.
Libra will have an association with financial services and significant technology in Sweden. PayPal, MasterCard, Visa, Uber, and Lyft are backing up Libra in a significant manner.
Several regulators across the country said that Libra might be just the thing that everyone needs to thrive. Libra could also help a country at the time of national crisis and also during the inefficiency of government. The governments of several countries do not have the monetary power to manage the economy, and this happens frequently.
Mark Carney, Bank of England’s governor did provide Libra with a very positive reception back in June. Carney also said that the cryptocurrency market doesn’t need an open door, rather it needs an open mind. According to Carney, the digital currency can increase the protection of a customer, and deliver prudential regulation. Digital currencies can also address the issues concerning data protection and money laundering.
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