5 EU-based Nations Formed Alliance to Stop Libra From Happening

By Chris Torres | November 1, 2019

Five EU-based nations have reportedly partnered with each other, in an attempt to stop the official introduction of Facebook’s Libra from happening. 

Specifically, after a few private seminars held throughout October, France will be the leader of a group consist of Germany, Italy, Spain and the Netherlands, with the primary mission to prevent the stablecoin from being issued.

As reported by Politico Europe on October 30, the deputy finance ministers of said nations will be the representatives for their agreed-upon anti-Libra goal, and will try to get other EU ministers on board in a meeting held in Brussels on October 28th. 

The alliance looks to stop the Libra to be available in the EU region, and to also generate enough pressure for Facebook, along with its associates in the Libra Association, to shut down the project entirely. Specifically, the alliance is putting efforts in convincing EU authorities to permanently prohibit Libra. 

The governments, however, have a different idea about the matter, claiming a permanent ban to Libra could potentially pose numerous complications. Specifically, such prohibition needs to be supported with a detailed, legally accepted reason, together with the set of regulations that could be applied. 

The Eurozone diplomats and European Commission (EC) also suggested caution should be highly taken into account, regarding any extremely thorough measures that could be taken, as future technological advancement could be postponed or slowed down as one of the possible negative effects. 

The EC is going to issue a paper, suggesting unless the EU can properly regulate Libra, the project should be prohibited from operating in the region.

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