Stories
Slash Boxes
Comments

SoylentNews is people

posted by janrinok on Sunday September 15 2019, @12:23PM   Printer-friendly
from the get-off-our-lawn! dept.

Submitted via IRC for SoyCow2718

Stormclouds gather for Facebook's Libra currency

International outcry is mounting over Facebook's Libra—with central banks, governments and regulators railing against the social media giant's upstart cryptocurrency. Facebook unveiled plans in June for Libra—which will roll out in 2020—to be backed by a basket of currency assets to avoid the wild swings of Bitcoin and other virtual units. Facing staunch opposition in Europe, Libra's boss admitted to AFP late on Thursday that it could yet decide not to operate in the region.

"We do not want to play at being pirates," said Bertrand Perez, managing director of the Libra Association, on the sidelines of a cryptocurrency event in Paris. "If the European Central Bank refuses us permission to operate in Europe, then we will not operate there," Perez said, describing regulatory concerns as "legitimate" but not insurmountable.

The Libra Association, a nonprofit organisation based in Geneva, has been formed to oversee the digital currency's network.

France has become the latest vocal opponent, warning it would block Libra's development in Europe because the proposed currency threatens the "monetary sovereignty" of governments. "I want to be absolutely clear: in these conditions, we cannot authorise the development of Libra on European soil," French Finance Minister Bruno Le Maire said Thursday.

The Silicon Valley giant wants to tap into its two billion Facebook users around the world, which it hopes will use Libra for online shopping, financial services and payments. Yet Le Maire fired back: "The monetary sovereignty of countries is at stake" from a "possible privatisation of money ... by a sole actor with more than two billion users on the planet." A top ECB official recently warned that Libra could harm both the institution and the euro.

"I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favour of the beguiling but treacherous promises of Facebook's siren call," said ECB board member Yves Mersch. Nevertheless, Emilien Bernard-Alzias, a London-based lawyer who specialises in financial markets and cryptomoney, talked down the impact of growing global opposition to Libra.

He told AFP that such "political statements have no real legal meaning" and their "alarmist" arguments were unlikely to stop the birth of Libra—even if the possibility of an outright ban cannot be completely ruled out.


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @01:22PM (3 children)

    by Anonymous Coward on Sunday September 15 2019, @01:22PM (#894326)

    “first they ignore you, then they laugh at you, then they fight you, then you win”

    Hmm, maybe there's something to this crypto stuff after all.

  • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @01:31PM (2 children)

    by Anonymous Coward on Sunday September 15 2019, @01:31PM (#894329)

    Stage 4: everybody recognizes the emperor has no clothes and has a good laugh.

    • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @01:39PM (1 child)

      by Anonymous Coward on Sunday September 15 2019, @01:39PM (#894333)

      Possibly, but perhaps money is strange. No emperor has any clothes and so crypto being based solely on faith may not be a problem.

      If the French could see a good laugh coming, then the only reason to make a fuss now is to get a bigger laugh later?

      • (Score: 0) by Anonymous Coward on Sunday September 15 2019, @02:29PM

        by Anonymous Coward on Sunday September 15 2019, @02:29PM (#894346)

        Yes, but this is not money.