France and Germany refuse Facebook's cryptocurrency

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France and Germany refuse Facebook's cryptocurrency

France and Germany refuse Facebook's cryptocurrency

French and German finance ministers have expressed objections to the presence of Facebook's Libra cryptocurrency. According to AFP, the two countries objected to the impact on global financial stability.

Last month, Facebook announced its intention to launch Balance. This announcement was greeted with concern by the government and criticism of social media giants around the world.

This problem is at the heart of the concerns of the ministers and central banks of the most advanced group of G7 countries at the beginning of their meetings. "G7 finance ministers and central bank governors have serious concerns," said German Finance Minister Olaf Scholz.

"They want to make sure that all existing regulations are followed and if they need to be changed in the future, so that we can ensure the stability of the international financial system," he added.

"We are talking about monetary stability, security, data protection and democratic control," he added.

French Finance Minister Bruno Le Maire, who has warned against Libra several times since its launch. He said he hoped that the G7 would consider the need for a framework or a regulation and the conditions that would make such instruments feasible.

"Today, we can not accept that an instrument of exchange appears when it does not respect the rules of prudence to which all sovereign currencies must submit". Their comments echoed the warning issued by US Treasury Secretary Steven Mnuchin, who was also present at the meeting.

He added that Facebook had to meet very strict standards before being able to continue with Libra.

Mnuchin revealed that this type of virtual currency had been linked to money laundering and illegal activities. "Whether or not they are banks, they are subject to the same regulatory environment," Mnoutchine told reporters.

Libra is widely regarded as a dominant challenger of global Bitcoin players. Scheduled to be launched in the first half of 2020, Libra is designed to be supported by a basket of foreign currency assets to avoid any switch between bitcoins and other cryptocurrencies.
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