French Finance Minister: Libra Will Take Away State’s Power To Control Currency
French Economy and finance minister Bruno Le Maire attacks Libra again this time claiming that Facebook’s led stablecoin will intrude on one of the most important national government mandates, issuance of currency.
In an op-ed to Financial Times, Le Maire stated if Libra was allowed to take off it will take away the sovereign power of states to issue and control their own currencies which will have unprecedented repercussions to the world’s economy and financial system.
Le Maire’s opinions are similar to his German counterpart, Olaf Scholz who has maintained that Libra should not be allowed in Europe as it will infringe on the sovereignty of the countries.
Le Maire stated that he can’t imagine one of the most powerful tools of a state, monetary control, and policy, being taken over by private companies that are not subjected to any democratic control.
The finance minister explained that after the creation of the euro in 1999, the EU member states gave up some aspects of their sovereignty to a more powerful European project. He pondered whether states are ready to allow Facebook together with other members of the Libra Association to provide private currency and undermine the effort made by EU member states.
Le Maire reiterated his sentiments in a tweet claiming that sovereignty, both political and monetary, can never be shared with private companies.
France has been one of the harshest critics of Libra which is facing intense pressure from policymakers around the globe. Politicians and regulators have been raising concerns with the Libra project fearing that Facebook will have immense power on money issues around the world.
In the past, Le Maire has categorically stated that France will never allow Libra to operate in the country as it is a threat to the EU’s financial systems among other risks.
According to CoinDesk, Le Maire, the EU needs to move faster and come up with innovative cross border payment systems as well as central bank-issued digital money to counter Libra’s threat. He explained that China should not be left to be the only player in the market on the issue.