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Countries that Does not Like Libra

Governments around the world continue to be vigilant after the American social media giant Facebook announced a permitted digital blockchain currency, named Libra. Not surprisingly, the prospect of a private-backed alternative digital currency does not exactly excite financial regulators in North America, Europe and Asia. Here are four countries that really don't like Facebook Libra.

France is not a fan of Libra

If you see the news in the media, France may have been the most vocal opponents of Libra to speak out regarding the blocking of the cryptocurrency development. Le Maire himself has been a very outspoken critic of Libra since the cryptocurrency recognized by Facebook was announced. He repeated his claim that the social media giant was not able to protect the privacy and data of its own users, thus, it should not be trusted if he issued his own currency.

Germany agrees with France

Germany is another European country that strictly opposes Facebook's cryptocurrency, Libra. The country's Finance Minister, Olaf Scholz, stated yesterday that German policymakers refused to accept parallel currencies and that Berlin would oppose Libra and other similar projects. In line with many countries, Germany is taking a blockchain approach that is not crypto with plans to implement a detailed and comprehensive blockchain strategy as early as today. The strategy is estimated to have little room for the implementation of stable coins, especially private currencies such as Libra.

A document seen by international news organizations reportedly stated: The Federal Government will work at the European and international levels to ensure that stablecoin will not be an alternative to official currencies. Germany also supports its European counterpart on Friday when France states that Libra presents risks to the financial sector and should not be permitted on the continent.

The United States is furious with Facebook's 'Power Play'

As one of the world's economic powers, the United States unexpectedly takes a very skeptical attitude towards one of the local companies that is trying to subvert the US dollar with alternative digital currencies. Almost immediately after Libra was announced, the US Congress asked Facebook to stop developing the crypto currency while lawmakers paid close attention to the situation. US President Donald Trump also took to Twitter to consider Libra, stating that he is not pro-Bitcoin or pro-cryptocurrency and that Facebook must go through the right regulatory channels if it wants to become a bank.

Facebook was then grilled at a congressional hearing by legislators on both sides of the aisle, with politicians like Alexandria Ocasia-Cortez putting the US government's distrust of Libra on thought and weight. Given the high profile issues related to Facebook's privacy, such as the Cambridge Analytica scandal, it is not surprising that American (and global) lawmakers will be critical of the company's ability to attract its own digital currency.

China that wants to win the race

The People's Republic of China is another country with the strongest economy that is not a fan of Libra for slightly different reasons. The world's most populous government views Facebook's cryptocurrency as a competitor of cryptocurrency issued by its own central bank, which is currently under development. Like other countries' central banks, the PBOC does not want to allow private currencies to weaken its financial authority in the country.

Adding to the concern for Chinese authorities is the fact that the US dollar might play a big role in supporting Libra. Wang Xin also noted:

"If a digital currency is closely related to the US dollar, it could create a scenario where a sovereign currency will coexist with a centric digital currency of the US dollar. But basically there will be one boss, namely the US dollar and the United States. If so, it will bring a series of economic, financial and even international political consequences. "

In the end, there is still a common thread among countries that have taken a strong anti-Libra stance - namely, that they do not trust Facebook to properly protect user privacy and that they do not want to allow private companies to subvert existing financial systems .

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