Facebook’s upcoming foray into the crypto space, the stablecoin Libra, is facing severe headwinds. As if the burgeoning project wasn’t in enough trouble already, five EU members will now reportedly attempt to stop it.
Could France, Germany, Spain, Italy and the Netherlands stop Libra?
This new report comes after a series of private meeting all through October. As a result of these, France is reportedly trying to take a stand against Libra in Europe. This development shouldn’t be entirely unexpected, seeing as Libra has been met with skepticism from the French government.
However, the fact that France now appears to be gathering a makeshift alliance to stop the issuance of Libra is nonetheless noteworthy. According to a recent October 30th report by the political news publication Politico Europe, France is leading this effort together with four other European nations.
Specifically, this anti-Libra group is said to consist of Spain, Germany, Italy and the Netherlands, in addition to France. As such, it includes the most powerful economies in the European Union – once the United Kingdom leaves the union.
Furthermore, Politico cites sources “familiar with the matter” who say that these countries have presented their positions to Brussels. Moreover, they are said to have communicated this stance to other EU ministers during a private EU meeting.
Report says these countries are encouraging a Libra ban
In addition to this, the report also goes on to suggest that this group aims to prevent Libra from launching in Europe. It also says that the aim of this multinational effort is to increase pressure on Facebook.
This could be the start of more formal opposition to Libra in Europe, which has – hitherto – been relatively vague. According to Politico, some Eurozone diplomats and European Commission officials have also said that this multinational coalition is encouraging EU government to ban Libra completely.
Nevertheless, this would run into some legal issues. Perhaps most notably, any such action would need the EU to provide a valid legal reason for the ban. Furthermore, it would also require details on what rules that should be applied regarding Libra.
With that said, Politico also claims that officials are currently working on a statement that they will release in December. This will supposedly state that Libra should not be allowed to launch unless the EU can somehow regulate it.
The idea that European nations will resist the launch of Libra is not a new one – but escalating things by seeking cross-national support in the EU is undoubtedly taking this a further step.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.