Editor's Note: This article comes fromZycrypto,authorBrenda NgariEditor's Note: This article comes from
,author
;Compiled by Odaily Qin Xiaofeng, edited by Lu Xiaoming, please be sure to indicate the source when reprinting. Donald Trump In June of this year, social media giant Facebook released its own encryption project - Libra. This move caused a global sensation and caused panic among governments of many countries.Steven MnuchinThe US government has clearly expressed its position. In July of this year, the President of the United StatesSteven Mnuchinexpressed distaste for the project, while the U.S. Treasury Secretary
insists that the Libra project poses a serious threat to national security.In particular, digital assets can be used for money laundering and financing terrorist attacks.In addition to the United States, the European Union (EU) has also expressed concerns about the Libra project and launched a discussion on it in late August this year.
. In less than a month now, France and Germany have suddenly announced that they will limit the development of Libra in Europe.
As financial analyst Cathie Wood puts it, these countries’ tough stance on Libra is not unfounded.
secondary title
Germany and France fired the first shot against Libra
On September 12, at the Organization for Economic Cooperation and Development (OECD) meeting in Paris, France, Bruno Le Maire, the French Minister of Economy and Finance, said of Libra that they would not allow Libra to operate in European development.Shortly after, Germany joined France in the anti-Libra camp, and the two countries subsequently issued a joint statement saying they would prevent any development of Libra in the European region.
Reuters reports
The European Union (EU) powers believe that "no private entity can have monetary power, which is inherent in national sovereignty", he said.
French finance ministers (Bruno Le Maire) and German finance ministers (Olaf Scholz) have backed the European Central Bank's (ECB) crypto plan to develop an ECB-backed digital currency to rival Facebook's Libra. They point out:
We encourage the ECB to accelerate work around possible public digital currency solutions.Bruno Le MaireNotably, France is an emerging center for blockchain technology and cryptocurrencies. On April 15, 2019, the French government passed new laws allowing companies related to digital assets to obtain a license from the French financial regulator AMF.
that month,He once expressed his absolute support for the blockchain, and hoped that France would become "a benchmark for the development of this industry and a benchmark for regulation on the international stage."Big business
The bank also publicly issued a €100 million bond on the ethereum blockchain on April 18.
secondary title
Euro, the lifeblood of Germany and France
So the question is, why is Facebook's Libra project so offensive to EU countries now?
Financial analyst Cathie Wood believes that the move by France and Germany may be due to the two countries' concerns that Libra will lead to the collapse of the euro, the legal currency of the European Union.
ARK founder and analyst Cathie Wood said Germany and France were right to worry about Libra's impact on the euro, given the decline in European bank stocks. However, she explained that she does not expect developed countries with strong currencies to shy away from digital assets like Libra.
Cathie Wood says: Raoul PalHowever, macroeconomists and analysts
However, he believes that since the euro zone crisis in 2012, the global economy is on the verge of collapse, and national currencies such as the euro will have no chance of survival; on the other hand, cryptocurrencies will thrive in this chaos.
Libra Statement: No Threat to Sovereign CurrenciesBloombergDespite being made difficult by regulatory authorities in various countries, Facebook seems to have made up its mind and has been advancing the project.
Bloomberg
It has been pointed out that Facebook has hired multiple lobbyists for Libra to try to persuade those lawmakers who threatened to block its launch of the cryptocurrency.
On Sept. 16, Libra co-founder and head of Calibra David Marcus defended the project on Twitter, countering prevailing skepticism that Libra would pose a threat to sovereign currencies.
Marcus explained that Libra is a "better payment network and system" based on existing currency issuance; Libra will be pegged to fiat currency (such as the US dollar) at a 1:1 ratio. Therefore, it is impossible to intervene in a sovereign currency, as no new currency will be created.
In the end, Marcus said that the Libra team is willing to accept strict supervision and supervision:
