France is creating a G7 task force to ensure that transnational cryptocurrencies like Facebook’s Libra are regulated to protect the economy and the consumer.
Leading the campaign for regulation is France’s central bank governor Francois Villeroy de Galhau, one of the frontrunners to succeed Mario Draghi as president of the European Central Bank. De Galhau proposed that the task force should be led by Benoit Coeure, his like competitor in the race to succeed Draghi.
Formally, France does not oppose the new global currency but opposes the prospect of it emerging as a legal tender which would then challenge sovereign currencies. The Governor of the Bank of England, Mark Carney, also expressed the need for central bank oversight over the Libra.
The challenge posed by Libra also imbues the discussion for an EU agency that can tackle money-laundering more urgently. Earlier in June, France unilaterally introduced new regulation for cryptocurrency oversight and called on the 28 members of the EU to take similar measures. France will require all cryptocurrency traders in the country to register their activity and pay tax on profits.
Facebook announced the creation of a global cryptocurrency in an effort to exploit its network to expand into digital payments. In doing so, it has formed a digital alliance with behemoths like Mastercard, PayPal and Uber, to form Libra Association.
The Libra Association will be Geneva-based with David Marcus leading Facebook’s cryptocurrency program.