This archive report was first published on 21 October 2019.
On October 20, 2019, Facebook's Libra digital currency project head, David Marcus, sought to address concerns raised by France's Economy Minister Bruno Le Maire regarding the potential for a company to control a government's currency. Speaking at a forum hosted by the Group of 30, Marcus emphasized that the Libra Association, comprised of 21 companies, will welcome competition to benefit local access and strive for the lowest cost possible for consumers.
Libra is a stablecoin tied to national currencies, different from other digital currencies like Bitcoin. However, Le Maire stated that European governments will not allow a private company to have the same power as sovereign states and will take steps to block Libra from Europe.
Agustin Carstens, former Mexican central banker and head of the Bank for International Settlements, agreed that technology can help provide access to the financial system but emphasized the need to maximize the use of proven technology that provides stability.
Marcus remained cautiously optimistic, stating that a change of this magnitude requires a great sense of responsibility but that the company can work together to solve issues.
Central banks and government finance officials have long worried about the challenges posed by digital currencies, including the risk of money laundering and financing terrorism.
