Facebook’s Crypto Libra Shouldn’t Become Sovereign Currency, Blasts French Finance Minister
By CCN Markets: Facebook’s unveiling of Libra, its cryptocurrency project coming in 2020, has caught the attention of many, including the French Finance Minister. Bruno Le Maire, speaking on French Radio, has said that this new cryptocurrency cannot operate as a sovereign currency.
Facebook’s Libra project intends to introduce a digital currency for usage on its platforms. However, this is raising several economic issues. Concerns on its regulation, and the status of this currency, are up for debate with Le Maire giving some stern warnings.
Stern Libra warning
With its reach of over 2.3 billion users, Facebook’s cryptocurrency could well call into question the banks’ control over commercial transactions as well as the role of the state in the banking system.
It is for these reasons that Le Maire has warned that currency remains the product of sovereign states and not private companies.
“That Facebook creates its own currency, a transaction instrument, why not,” Le Marie mused. “In contrast, it is out of the question that it becomes a sovereign currency,” he then warned.
