Paris – Facebook’s cryptocurrency Libra decried by French finance minister, saying it ‘must not happen
Facebook’s cryptocurrency Libra was only officially unveiled earlier today, but has already been the target of vociferous opposition from France’s finance minister Bruno Le Maire, according to a Bloomberg report on Tuesday.
Le Marie said Libra “can’t and…must not happen” and that “it is out of question’’ for the cryptocurrency to “become a sovereign currency.” He has reportedly called on the Group of Seven (G-7) central bank governors and guardians of the global monetary system to review the social media giant’s upcoming cryptocurrency and submit a report next month.
According to the report, Markus Ferber, a German member of the European Parliament, warned that Facebook could become a “shadow bank” and said regulators should be vigilant.
Facebook’s stated mission for Libra is to serve the unbanked and facilitate low-fee money transfers globally.
Facebook Libra today revealed blockbuster partnerships
Here’s the full list of the Libra Association’s Founding Members at launch: Mastercard, PayPal, PayU, Stripe, Visa, Booking Holdings, eBay, Facebook, Farfetch, Lyft, Mercado Pago, Spotify, Uber, Iliad, Vodafone, Anchorage, Bison Trails, Coinbase, Xapo, Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, Union Square Ventures, Creative Destruction Lab, Kiva, Mercy Corps and Women’s World Banking.
The Libra Blockchain is a new type of blockchain, primarily designed to support the Libra cryptocurrency, but one that also allows anyone to build smart contracts on top of it, similarly to Ethereum.
The Libra coin is a special type of cryptocurrency, a stablecoin, meaning its value should not change much compared to some stable real world asset, like the U.S. dollar. It’s backed by actual fiat money and equivalents, held by custodians chosen by the Libra association.