Skip to Content
Blockchain

France and Germany have said they will oppose Facebook’s digital currency

September 16, 2019
French finance minister Bruno Le Maire
French finance minister Bruno Le MaireAssociated Press

France and Germany have formed a united front against Libra, Facebook’s proposed digital currency.

The news: In a joint statement issued late last week after a meeting of eurozone finance ministers, France and Germany said that Facebook’s plan for Libra “fails to convince” them that risks related to security, investor protection, money laundering and terrorist financing, and “monetary sovereignty” will be adequately dealt with. “We believe that no private entity can claim monetary power, which is inherent to the sovereignty of nations,” the statement reads.

Backlash at home and abroad: Facebook’s bold plan to issue global digital currency next year has been met with significant skepticism and resistance from policymakers in the US, including the president. Facebook has responded by bolstering its lobbying forces in Washington, DC. This joint statement suggests that the political challenges Libra faces in Europe could be more serious.

A wake-up call: The joint statement from France and Germany concludes, “We encourage European central banks to accelerate work on issues around possible public digital currency solutions.” What is this referring to? Apparently, the European Central Bank has been quietly working on its own digital currency project. 

Now Facebook seems to have inspired the bank to pick up the pace. At a news conference after the meeting of finance ministers, ECB board member Benoit Coeure called Libra a “wake-up call.” He said it would fuel efforts to expand access to real-time payment capability in Europe. “We also need to step up our thinking on a central bank digital currency,” Coeure said.

Keep up with the fast-moving and sometimes baffling world of cryptocurrencies and blockchains with our weekly newsletter Chain Letter. Subscribe here. It’s free!

Keep Reading

Most Popular

DeepMind’s cofounder: Generative AI is just a phase. What’s next is interactive AI.

“This is a profound moment in the history of technology,” says Mustafa Suleyman.

What to know about this autumn’s covid vaccines

New variants will pose a challenge, but early signs suggest the shots will still boost antibody responses.

Human-plus-AI solutions mitigate security threats

With the right human oversight, emerging technologies like artificial intelligence can help keep business and customer data secure

Next slide, please: A brief history of the corporate presentation

From million-dollar slide shows to Steve Jobs’s introduction of the iPhone, a bit of show business never hurt plain old business.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.