France Proposes 'Eurocoin' To Compete With Facebook's Libra


French Finance Minister Bruno Le Maire has proposed that Europe should consider creating its own “public digital currency” that could challenge Facebook’s Libra.

According to report by Reuters on Sept. 13, Le Maire told reporters at a meeting of EU finance ministers in Helsinki, that he would be discussing the issue of a possible European public digital currency with his fellow European ministers next month.

He restated his concerns over proposed Libra stablecoin as he believes it could pose risks for consumers, financial stability and even “the sovereignty of European states.”

Le Maire urged the European bloc to push ahead with its work to cut the costs of cross-border payments.

Reuters noted that real-time payments in the eurozone have been available as of 2017, but the scheme has only drawn participation from roughly half of the bloc’s banks. Moreover, the project currently remains largely implemented for domestic payments.

Aside from these proposals, Le Maire said that the bloc needed to rethink its approach toward regulating cryptocurrencies at an EU level.

In a continual refusal to authorize Libra’s launch in the European Union, Le Maire argued that the current state of limbo in which regulators continue to debate whether to regulate cryptocurrencies as securities, payment services or currencies must be resolved through the creation of a robust and common framework.

Given this legal uncertainty, a spokeswoman for the EU commission reportedly told Reuters that “with the publicly available information on Libra, it is currently not possible to say which exact EU rules would apply.”

As at yesterday's report, France made a drastic move to stop the development of Facebook's Libra stable coin. As at the time, French Finance Minister Bruno Le Maire said that the country cannot permit the launch of Facebook’s proposed cryptocurrency in Europe because the "monetary sovereignty of states is at stake."