French finance minister opposed Facebook cryptocurrency project. According to him, Libra threatens the monetary sovereignty of European states.

Bruno Le Maire, head of the French Ministry of Finance, said that Libra carries financial risks and threatens national monetary sovereignty. Speaking at a meeting of the Organization for Economic Co-operation and Development (OECD) in Paris, Le Maire said:

“This eventual privatization of money contains risks of abuse of dominant position, risks to sovereignty and risks for consumers and for companies.”

Le Maire did not specify what measures he considers necessary in order to ban Libra on the territory of the European Union, which includes 28 states.

“Libra also represents a systemic risk from the moment when you have two billion users. Any breakdown in the functioning of this currency, in the management of its reserves, could create considerable financial disruption,” the minister said.

According to him, Libra should be banned in the EU.

“All these concerns about Libra are serious. I, therefore, want to say with plenty of clarity: in these conditions, we cannot authorize the development of Libra on European soil.”

The European Commission later announced that it would examine all aspects of Libra in order to assess potential risks, ranging from tax issues to fears related to the confidentiality of user data.

“It's likely that once we know more [about] the contours of the currency, the project will require some form of authorization in Europe. Then it would be up to the Libra association to contact relevant authorities - be they national or at EU level - to obtain the necessary licenses, if needed, before launching in the EU,” said Vanessa Mock, a spokeswoman for the European Commission.

The Libra Association responded that the words of the French minister emphasize the importance of interaction with global regulatory authorities.

“We recognize that blockchain is an emerging technology and that policymakers must carefully consider how its applications fit into their financial system policies,” said Dante Disparte, head of policy at the Libra association.