Bruno Le Maire, French Finance Minister, has called on European Union member states to come up with rules and regulations that can be used in the zone as well as consider a public digital currency which is capable of rivaling Facebook’s Libra currency, Reuters reports.
Speaking at the sidelines of EU finance ministers conference in Helsinki, Le Maire disclosed to reporters that he will propose a discussion on a probable European public digital currency with other ministers in the region from next month.
Le Maire also raised his concerns about the upcoming Libra stablecoin saying that it may be a major risk to consumers, global financial wellbeing as well as the sovereignty of the European nations.
The French Finance Minister also pleaded with the EU members to expedite the implementation of the measures to reduce cross border payments costs. Reuters states that the eurozone real-time payments has been available from the start of 2017, however, only a bunch of few banks from the zones have embraced the scheme. In addition, the scheme largely deals with domestic payments.
Le Maire also urged the EU block to consider its approach when it comes to regulating cryptocurrencies arguing that it needs to be done at the EU level. The minister said that Libra should not be launched at the EU states until the regulators can come up with a single common framework on how to regulate it. In the recent past, European regulators have been debating on whether cryptos should be regulated as securities, payment platforms or currencies.
Based on the legal framework confusion, European Commission spokesperson said that based on the available information about Libra, it was difficult to confidently say the type of EU regulations that would apply.
Le Maire has also ruled out the launching of the Faebook’s project among the EU members until the lingering concerns are fully addressed.
Cointelegraph reports that previously Le Maire had indicated that he will seek guarantees that Libra would not be utilized for illicit financial activities.
Meanwhile former International Monetary Fund (IMF) head, Christine Lagarde, who is poised to become the next president of European Central Bank’s (ECB) is pushing for a European digital currency and it could be a matter of time before it comes to fruition.