Why is France creating a cryptocurrency task force to monitor Facebook’s Libra?

10 Facts about Facebook's Currency Libra

France is creating a joint Group of Seven Nations (G7) task force to find out how central banks can make sure digital currencies like Libra comply with the consumer protection and anti money-laundering regulations. 

That announcement was made by France’s central bank governor Francois Villeroy de Galhau. He said that European central bank board member Benoit Coeure will be leading the task force. 

Facebook announced last week its intention to launch Libra in partnership with 28 other industry leaders that include heavy hitters like Uber, Mastercard, PayPal, and eBay. The 28 organizations are founding members of the Geneva, Switzerland based organization called The Libra Association which will oversee Libra. 

It is interesting to note that no banks are part of the founding members group of The Libra Association. 

Facebook’s announcement unleashed a shockwave throughout the world drawing a plethora of reactions from private sector and government of many countries. 

To be clear France is not opposed to the idea of Facebook creating a digital instrument of Financial transactions. However, it is against the notion of Facebook Libra turning into a sovereign currency. 

Governor Villeroy said “We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.”

Morevoer, Villeroy wants the European Banking Authority to coordinate a network of national anti-money laundering entities, in lieu of creating a specializd European agency . These entities will carry out any emergency measures whenever called upon to do so. 

To be clear France is not opposed to the idea of Facebook creating a digital instrument of Financial transactions. However, it is against the notion of Facebook Libra turning into a sovereign currency. 

Governor Villeroy said “We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.”

Morevoer, Villeroy wants the European Banking Authority to coordinate a network of national anti-money laundering entities, in lieu of creating a specializd European agency . These entities will carry out any emergency measures whenever called upon to do so. 

To be clear France is not opposed to the idea of Facebook creating a digital instrument of Financial transactions. However, it is against the notion of Facebook Libra turning into a sovereign currency. 

Governor Villeroy said “We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.”

Morevoer, Villeroy wants the European Banking Authority to coordinate a network of national anti-money laundering entities, in lieu of creating a specializd European agency . These entities will carry out any emergency measures whenever called upon to do so. 

Facebook is set to face the US lawmakers next week (July 16) when The US Senate Banking Committee  holds a hearing to go over Facebook’s plans as it prepares to launch Libra in the first half of 2020.

Bank of England Governor Marc Carney said on Thursday that Libra project needs to be carefully scrutinized by regulators to make sure Facebook satisfies regulators on issues such as financial security, data protection, and money laundering.

France currently holds rotating presidency of the G7 group.