EU and Libra: Facebook's Project Getts Challenged as 'Eurocoin' Looms

The ripples of the Libra effect are beginning to lap against the shores of Europe, with French Finance Minister Bruno Le Maire suggesting that Europe should throw its hat into the ring and launch its own digital currency.

Le Maire's announcement comes at a time when EU politicians are becoming increasingly vocal about Libra and digital currencies in general.

Le Maire shared his concern that Libra comes with inherent risks for consumers and even "The sovereignty of European states."

Given Le Maire's rousing comments for Europe to develop its own digital currency, it is unsurprising that he is not a supporter of Libra.

Despite calling for an outright refusal of Libra, Le Maire said that the EU bloc needs to change its current approach to cryptocurrencies, in which regulators deliberate over whether to classify crypto as securities, payments services or currencies.

Heilmann's comments were echoed by German Vice Chancellor and Finance Minister Olaf Scholz during a discussion in Berlin on Sept. 17 in which he said that Libra will be rejected: "We cannot accept a parallel currency. You have to reject that clearly."

Libra falls under scrutiny of central banksPerhaps aiming to alleviate some regulatory pressure, on Sept. 16, the Libra association met with 26 central banks in the form of the Committee on Payments and Market Infrastructure, which counts the Federal Reserve and the Bank of England among its members.

The event marks the first meeting between Libra representatives and global policymakers since the project's launch on June 18.Although the meeting could yield positive results, Benoit Coeure, a European Central Bank executive who reportedly chaired the event in Basel, tweeted that the bar for regulatory approval in the EU would be very high.

" The executive concluded by stating that Libra will cooperate and engage with regulators to address concerns around the project.

"Libra could threaten the sovereignty of both the US and EU as it represents a basket of currencies that could create an imbalance/skew leading to a capital flight.