Germany has delivered a blow against Facebook’s planned cryptocurrency, expanding Europe’s opposition to the social network’s financial ambitions.
Facebook is once again defending libra – this time against fears that the envisioned cryptocurrency could replace sovereign currencies from the US dollar to the euro.
The European Central Bank warned Facebook that the bar for regulatory approval of its planned libra project has been set very high as governments in the region express concerns about digital currencies.
Facebook’s libra would be blocked in Europe because the digital currency is too risky and threatens sovereignty, French finance minister Bruno Le Maire said on Thursday.
Current and former central bankers in Jackson Hole, Wyoming, weren’t sure if Mark Carney’s idea for a virtual reserve currency is the answer, but they agree that the dollar’s dominance is a problem.
Mark Carney has laid out a radical proposal for an overhaul of the global financial system that would eventually replace the dollar as a reserve currency with a libra-like virtual one.
European Union antitrust regulators are already probing Facebook s two-month-old libra digital currency project.
The People’s Bank of China is “close” to issuing its own cryptocurrency, according to a senior official.
The group behind the Facebook-backed libra digital currency has said it will ensure it meets privacy standards after data protection authorities raised concerns about its design.
Regulators will need to “step up” to contain any dangers emanating from Facebook’s planned libra token, but shouldn’t attempt to crush the initiative, according to International Monetary Fund acting MD David Lipton.