Finance Ministers Not Happy With Facebook Currency Libra
Finance Ministers not Happy with Facebook currency Libra. The digital currency libra is at the top of the agenda during the G7 summit, this week in France.
The finance ministers of the major economic powers fear that the currency will replace the existing currency.
The idea is that the libra will allow payments to be made worldwide, online and offline.
The fact that France is finished with the enormous power of tech giants such as Facebook,
Apple and Google became clear last week when a tech tax was introduced.
The companies have to pay 3 percent tax on the income they generate in France.
“We must act”
It is in line with the harsh attitude of the French finance minister Bruno Le Maire to the libra.
Last month Facebook announced this digital currency together with a host of other companies.
The intention is that in the future payments will be made worldwide without the intervention of banks.
Governments fear that central banks will be sidelined.
“These digital giants are increasingly turning into separate states.
States where citizens have no control and where democracy does not exist,” Le Maire said. “We must act against that.”
The French minister joins his American counterpart, Steven Mnuchin.
He said on Monday that the libra could be used to finance terrorism.
The American president Donald Trump is also not a fan.
The central banks of Japan, the US and the eurozone have already announced that they see a danger in the libra.
The British financial market watchdog also wonders whether the global size of the libra is acceptable and desirable.
The G7 consists of four European countries, Japan, the US, Canada and the European Union.