Five core EU member states are working together to not allow Facebook to issue its virtual currency Libra in the European Union, according to a Politico Europe report published on Oct. 30. Government representatives from France — which appears to be spearheading the ban effort, Germany, Italy, Spain, and the Netherlands have held a series of private meetings in the month of October to develop a unified position against Libra. According to Politico, the deputy ministers of finance from these countries came to Brussels on Oct. 28 to discuss their opinion on the matter with other EU ministers.
Politico goes on to say that the politicians’ intention is to block Libra from being launched in Europe and to try to force Facebook and its partners to abandon the project. Reportedly, several EU diplomats and European Commission officials have corroborated the story, explaining that the alliance will urge the governments of European Union countries to downright ban Libra.
There is, however, a problem with this approach. According to the report, the officials believe that a total ban on Libra would be tricky for the European Commission as they can’t carry out such a harsh action without valid legal grounds, and more information is still needed to decide what rules would apply to Libra. Instead, European Commission officials are leaning towards a more cautious approach with respect to the new virtual currency, voicing their belief that a ban could make the EU appear too hostile to tech companies looking to launch their new products and services.
According to Politico, the politicians intend to release a statement in December, in which they will reportedly state that if Libra cannot be regulated in the EU, it should not be allowed to launch. COIN360 reported earlier that at the G7 meeting in mid-October, France, Germany and Italy proposed to ban Libra because of the risks associated with stablecoins.