After a surprise rejection of the Libra by French authorities recently, it seems Germany is now also jumping on board. The two countries issued a joint statement condemning Facebook’s cryptocurrency plans.
Facebook’s cryptocurrency aspirations have been put on hold in Europe as both France and Germany have come out against the idea. In a joint statement, the two countries said that “no private entity can claim monetary power, which is inherent to the sovereignty of nations.” Both countries plan to block the Libra on European soil.
The statement comes just days after French Finance Minister Bruno Le Maire told attendees of the OECD Conference 2019 that he would do everything in his power to stop the Libra. The news shocked the cryptocurrency world because of the strong language: Le Maire promised to block the Libra from operating ‘in all of Europe.’
The rejection of the Libra comes from a fear that the social media giant’s cryptocurrency ambition could end up undercutting state sovereignty, especially of the Euro. Moreover, Le Maire has also been open to the Eurozone issuing its own stablecoin, commonly dubbed ‘EuroCoin’ in the press. It seems that European officials are afraid that the Libra might prevent their own cryptocurrency plans from coming to fruition.
The controversy underscores the simple fact that not only are stablecoins here to stay, but state-backed cryptocurrencies could become the norm in the future. This could allow for the mass adoption we’ve been waiting for as stablecoins become more and more integrated into global commerce. Conversely, however, it could also lead a ‘currency war’ which would wreak unprecedented instability in world markets.
In short, Facebook’s cryptocurrency plans in Europe seem to be on thin ice.
Do you believe that the Libra will still be able to launch in Europe someday? Let us know your thoughts below in the comments.
Image courtesy of France24.