Facebook’s Libra not welcome in Eurozone

Since Facebook revealed their plans for Libra currency, governments around the world have raised their concern over it and fear it could threaten their monetary sovereignty.

Today in Helsinki at the meeting of eurozone finance ministers, France’s Finance Minister Bruno Le Maire and his German counterpart, Olaf Scholz, said that – “Virtual currencies pose risks to consumers, financial stability and even the monetary sovereignty of European states”.

The statement comes after eurozone members discuss risk posed by Facebook’s Libra currency. The eurozone members agree to pursue a tough regulation should Libra seek approval to operate in Europe.

Planning to roll-out own Digital currency

Eurozone members are considering to step-up plans for launching a European Central Bank-backed digital currency for real-time payments in the eurozone.

In a joint statement, Le Maire and Germany’s Scholz said, “We encourage European central banks to accelerate work on issues around possible public digital currency solutions”.

Much before the announcement of Facebook’s Libra project, European Central bank had prepared plans for digital currency. The proposal suggests allowing consumers to deposit or withdrawal digital currency directly at the ECB.

This will allow the consumer to use the digital currency without the need of a bank, clearing counterparties, and intermediaries. The technical feasibility remains to be seen, however, the proposal has already met opposition from banks.