Posted 3 years ago | by Bethany Armstrong
Facebook's Libra project is facing mounting concerns from the France government.
Facebook's Libra Association has once again made the news. Libra is the cryptocurrency project that Facebook is working to launch. The United States government has loudly proclaim their hesitation and leeriness about the Libra project. Now, the Switzerland-based project is facing resistance from the France government.
CNBC is reporting that France will not authorize the Facebook cryptocurrency project. The French Finance Minister Bruno Le Marie says, "Libra would put the sovereignty of [the French] government at risk."
Facebook, along with other companies like PayPal, Visa, and Mastercard, have backed Libra project. Unlike other cryptocurrencies, Libra would not be decentralized. The cryptocurrency control would be through the Switzerland-based non-profit association.
The European Union antitrust regulators have been scrutinizing Libra. In August, The European Commission, said that Libra is currently under "investigating [for] potential anti-competitive behavior".
Across the globe, world leaders are expressing concern about Libra. The main concern seems be that an enormous social media company has the potential to transform traditional currency and government regulations as we currently know it. Facebook has 2.3 Billion users; a number that is larger than the populations of the United States and China combined. Government officials have also mentioned security risks for users. As the list of concerned countries grow, Facebook remains committed to launching the Libra project.
Dante Disparte, the head policy and communication at Libra, said, “We welcome this scrutiny and have deliberately designed a long launch runway to have these conversations, educate stakeholders and incorporate their feedback in our design... We recognise that blockchain is an emerging technology, and that policymakers must carefully consider how its applications fit into their financial system policies.”
The welcomed scrutiny further displays that when it comes to Libra, Facebook isn't backing down from launching their own cryptocurrency.