Facebook's libra is a threat to the sovereignty of nation states

Facebook's libra is a threat to the sovereignty of nation states

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".

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. 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." .

One of the governments who have openly come out to criticise Libra is the French Government which said it would block the development of Facebook's Libra in Europe. We are about to get our approval, as a payment system, in Switzerland.

Libra, announced in June and promptly denounced by privacy advocates, academics and lawmakers, represents the social ad giant's attempt to expand beyond advertising into the payments business. The company initially enlisted 27 partners to enable digital currency transactions and then brought in lobbyists after a broad backlash.

During an interview with Les Echos, a French news outlet on September 12, Bertrand Perez, the director of the Libra Association, stated the cryptocurrency should launch during the second half of 2020.

According to multiple reports, The Libra Association officially submitted a request to the Swiss Financial Market Supervisory Authority (FINMA), in an effort to clarify how Facebook's coin will be regulated under Swiss law.

Many argue that because Bitcoin isn't backed by assets like gold or fiat currencies, it doesn't have any inherent value.

"I want us to have concrete projects available in the next few months", Le Maire said. Libra, she contends, is not about money or blockchain.

As per a statement from Perez however, Facebook is not seeking to create new stores of money via its token.

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