Facebook’s Libra was already going through a tough time in the United States as the platform’s CEO Mark Zuckerberg was grilled by lawmakers regarding the concerns attached to the crypto project. Now, recent reports reveal that Libra won’t have it any easy cross borders as five European Union member countries have come together to block the platform’s proposed stablecoin.
Facebook introduced its crypto endeavor, Libra with an aim to make it the new global currency however the social media giant’s plan seems to be falling flat as more countries and regulators band together to prevent the issuance of Libra within their borders. France, Germany, Italy, Spain and the Netherlands are the latest opponents of the Libra.
Report by the political news publication Politico Europe on October 30th revealed that the aforementioned EU member countries met in a series of private meetings throughout October regarding the Libra issue, with France leading the anti-Libra effort making it difficult for the Facebook-led virtual currency project to launch next year.
Libra is now possible hanging by a scarlet thread in the EU as the newest anti-Libra consists of five of the most powerful economies in the Union, once the United Kingdom takes its leave. While the big five might be getting the most spotlight in this matter, they are not the only ones weighing on Libra and its repercussions.
As per reports, sources “familiar with the matter” revealed that the other countries have also thought this through and have presented their stance regarding Libra to Brussels. In addition to that, they reportedly have communicated their positions to other EU ministers during a private EU meeting that was held on Oct. 28 in Brussels.
Moreover, the report goes onto explain that thwarting Libra’s launch and growth within the EU is a group effort and they hope to put Facebook under immense pressure, more so than it already is, by this multinational effort. The social media platform isn’t the sole target of this anti-Libra group, in fact, the report revealed the group will also be targeting the Libra Association and its members in hopes that they will give up on the project altogether.
Despite the heavy opposition, officials maintain that a complete ban of Libra could be problematic for the Commission. According to Politico, in order to proceed with the ban on the project, Brussels would have to provide a legal reason, along with details on what rules should be applied.
As of now, officials are reportedly working on a statement that they will release in December, which will decide upon the future of Libra in the EU, granted there is one.