France calls for EU-wide cryptocurrency rules amid Libra concerns

France 'Cannot Authorize' Facebook's Libra Project

France calls for EU-wide cryptocurrency rules amid Libra concerns

Furthermore, Perez also confirmed that Libra would upon launch be tied to several major world currencies but not the Chinese yuan.

Le Maire also said Europe should consider "a public digital currency" that could challenge Libra.

These actors are all needed now to process digital payments, but may no longer be necessary if the European Central Bank took over their functions, slashing transaction costs.

"I want to be absolutely clear: In these conditions, we can not authorize the development of Libra on European soil", Le Maire said.

Speaking at an OECD event on Thursday, French finance minister Bruno le Maire warned that the development of the digital currency would undermine " government sovereignty" and that it can not authorise its use. I, therefore, want to say with plenty of clarity: "in these conditions, we can not authorize the development of Libra on European soil". Perez maintained that Libra association was in constant dialogues with regulators and central banks.

While euro zone ministers seem united on a tough regulatory line on Libra, it is less clear whether they agree to set up common rules for virtual currencies.

The EU has yet to legislate on cryptocurrencies, instead leaving regulation to its member states. Exchanges and money transmitters, however, still have to comply with bloc-wide European Union anti-money-laundering regulations.

When asked whether Libra would need a licence to operate in the bloc, a spokeswoman for the EU's executive branch, the European Commission, told Reuters: "With the publicly available information on Libra, it is now not possible to say which exact EU rules would apply". However, that isn't stopping the coin's regulator, The Libra Association from applying for a payments license in Switzerland.

The EU-wide legal vacuum has paved the way for smaller states to fill it.

As previously reported by Hard Fork, Le Maire said Libra posed systemic financial risks, risks for sovereignty, and the potential for abuse of market dominance associated with Facebook's cryptocurrency.

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