Facebook’s cryptocurrency could be banned in Europe

Facebook’s plan to launch its own digital currency, Libra, faces scrutiny from some of the world’s largest financial institutions.

According to the Financial Times, representatives from the Libra Association will meet with officials from 26 of the world’s central banks in Bazel, Switzerland on Monday to discuss the digital currency’s “scope and design”.

This has finance ministers in the EU concerned that Libra could undermine the authority of government banks and destabilize finance sectors.

As a result, both Germany and France have previously argued for a ban on the currency in Europe in an effort to combat the potential effect of Libra on the EU’s financial system.

The Libra Association welcomed the engagement, stating that they had “deliberately designed a long launch runway to have these conversations, educate stakeholders and incorporate their feedback in our design”.

Facebook proposes the Libra coin as a means of performing transactions across borders, especially in developing countries with limited access to financial services and institutions. Its design would make the cryptocurrency independent of any single country’s monetary policy.

Facebook is no stranger to controversy. The company faces multiple anti-trust investigations in the US, with regards to its protection of users’ information and competition practices.

Now read: Libra would be blocked in Europe – French Prime Minister

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Facebook’s cryptocurrency could be banned in Europe