Global leaders spoke out against Facebook’s digital currency warning about a serious threat that the crypto currency is posing to the national sovereignty.
German finance minister Olaf Scholz said he was “very skeptical” about Libra, saying it is a responsibility of the democratic states to prevent creation of such a global currency. However, he admitted a bank reform has to be carried out to make transnational transactions easier, DW reported.
G20 warned that Facebook’s digital currency might create a space for money laundering and financial terrorism without appropriate regulations.
European officials plan to introduce tough restrictions on Libra in order to “protect” autonomy of democratic states.
Meanwhile, G7 and the European Central Bank stated that with a large-scale launch, digital currency could threaten the global monetary system and financial stability.
French Economy Minister Bruno Le Maire said Italy, Germany and France will take further steps in the coming weeks to clearly show that Libra is undesirable in Europe.
According to him, France will not allow a private company to have the same monetary power as sovereign states.
Italian Finance Minister Roberto Gualtieri agreed with saying there was a “strong consensus” between the countries to block private currencies.