Bad news for Facebook and its projects, France and Germany agreed to block Facebook’s Libra cryptocurrency, the French finance ministry said.
France and Germany governments announced that they will block Facebook’s Libra cryptocurrency, the news was reported by French finance ministry Bruno Le Maire.
“We believe that no private entity can claim monetary power, which is inherent to the sovereignty of nations”. reads a joint statement issued by the two governments,
“I want to be absolutely clear: in these conditions, we cannot authorise the development of Libra on European soil.” he said at a conference in Paris on virtual currencies.
French Finance Minister Bruno Le Maire explained last week the Facebook should not be allowed to operate the Libra cryptocurrency in Europe because it threatens the monetary sovereignty and financial systems of the states.
Facebook announced in June that it plans to launch Libra in 2020, to make it reliable the social network giant wants to use traditional currency to back Libra.
The non-profit Libra Associationinclude major firms such as PayPal, Visa, Stripe, Mastercard, eBay, and Uber.
“Unlike other cryptocurrencies, which are not controlled by a central authority, Libra will not be decentralised, but will be entrusted to a Swiss-based association of major technology and financial services companies. Besides Facebook, backers of Libra include the payment companies Visa, MasterCard and PayPal, and the ride-hailing apps Lyft and Uber.” reported The Guardian.
Authorities also fear possible abuses of the Libra cryptocurrency, including money laundering, and how Facebook would prevent them.
Pierluigi Paganini is member of the ENISA (European Union Agency for Network and Information Security) Threat Landscape Stakeholder Group and Cyber G7 Group, he is also a Security Evangelist, Security Analyst and Freelance Writer.
Editor-in-Chief at "Cyber Defense Magazine", Pierluigi is a cyber security expert with over 20 years experience in the field, he is Certified Ethical Hacker at EC Council in London. The passion for writing and a strong belief that security is founded on sharing and awareness led Pierluigi to find the security blog "Security Affairs" recently named a Top National Security Resource for US.
Pierluigi is a member of the "The Hacker News" team and he is a writer for some major publications in the field such as Cyber War Zone, ICTTF, Infosec Island, Infosec Institute, The Hacker News Magazine and for many other Security magazines.
Author of the Books "The Deep Dark Web" and “Digital Virtual Currency and Bitcoin”.