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France, Germany to blast Facebook’s Scale, go back to public cryptocurrency

HELSINKI (Reuters) – France and Germany, it said on Friday that Facebook’s (FB.(O) Scale mint has been subject to the risks of the financial sector, which could block its approval in Europe and to support the development of an alternative to a public cryptocurrency.

FILE PHOTO: the Statements of the Ripple, Bitcoin, Etherum and Litecoin are virtual currencies that can be used to show it on a PC system board in the illustration, the picture, February 14, 2018. REUTERS/dado Ruvic/Illustration

The criticism came as the European Central Bank has said that it is working on a long-term plan is to launch a public digital currency is that it would be able to create projects, such as a bathroom Scale would be superfluous.

The virtual currency, risks to consumers, financial stability and even monetary sovereignty to the European states, France, germany, the Finance Minister, Bruno Le Maire and his German counterpart, Olaf Scholz, said in a joint statement issued at a meeting of euro zone finance ministers in Helsinki, finland.

“France and Germany are of the opinion that the Scale of project, as described in Facebook’s blueprint for success is not going to convince you that such risks will be addressed,” she said.

The 19-nation euro-zone bloc is united in the pursuit of a robust regulatory approach, the Scale should seek permission to operate in Europe, the officials said at the meeting.

It is also the title of a common set of rules for the virtual currency, which is currently largely unregulated.

This is the currency of the european union have been working over the past few years on various projects in the digital payments are cheaper and faster, but none of them did well up to now.

A WAKE-UP CALL

Plans will be unveiled in June for the US social media giant Facebook to launch its own digital currency, the balance, for payments to, among, the hundreds of millions of people in Europe and around the world have led to a re-evaluation.

Libra: “a wake-up call for the European Central Bank (ECB) board member Benoit Coeure told a news conference in Helsinki following a meeting of euro zone finance ministers.

He said: “the sign of scales it had a new lease of life to efforts to broaden the inclusion of an ECB-backed project to provide real-time payments in the euro area, also known as TIPS. The project, which was launched last year, has been met with caution by the banks.

“We also need to think about a central bank of digital currency,” he added, with the unveiling of a so-far little-known plan.

An ECB official said of the project was to be able to consumers making use of e-money would be directly deposited with the ECB, without the need for the bank to have the accounts of the financial intermediary or the counterparty.

These players are all required for the processing of digital payments, but it may not be necessary, as the ECB took up their positions, and the cutting of transaction costs incurred. Libra’s plan, it would do so without any financial intermediaries.

The work of the ECB project was launched before the launch of the Libra and the last few months, or even years, Coeure said. The technical feasibility has yet to be seen, and the resistance of the banks is very great. He will present a report on virtual currencies from the G7 finance ministers next month, the officials said.

Le Maire, has said that one of the goals of this initiative is to ensure that the banks are reducing fees on international money transfers.

“We are encouraging the European central bank, to speed up the work on the problems and issues of audience and digital currency-based solutions,” Le Maire said in a joint statement with france and Germany Scholz.

A LEGAL NO-MAN’S LAND

While the eurozone ministers appear united in a tough regulatory line on the Scale, it is less clear whether they will agree to the establishment of a common set of rules for the virtual currency.

The EU’s financial services commissioner of the republic of Latvia Valdis Dombrovskis, has always been careful to underline the fact that cryptoassets have the opportunity to, as much as it is a threat.

The EU does not have a specific regulation to cryptocurrencies, which, on the Scale, it was revealed, had to be considered as a marginal problem by the majority of policy-makers, because only a tiny fraction of the bitcoins or other digital currency are converted into euro.

The new EU rules came into force last year, is to increase the control of the virtual-currency dealing platforms for the purpose of reducing the risk of money laundering and other financial crimes.

But, with the exception of the virtual currency to move into what is essentially a legal no-man’s land in the EU, as regulators have not yet been able to agree on the question of whether they are to be treated as securities, payments, services, or currency itself, the latter option is ruled out by the majority.

In the absence of specific regulations, the EU officials have been assessing whether the current rules on financial instruments would be effective, but as yet have reached no conclusion.

When asked whether the Scale would have to have a license in order to operate in the EU, a spokeswoman for the European Commission told Reuters that an authorisation would be likely to be required. However, “with the information that is publicly available on the monitor, at the moment it is not possible to say which of the EU’s rules, it would have been,” she added.

In Switzerland, the Scale is filling out an application for a payment service license, even though it may be confronted by rules that would normally apply to the banks and the regulators in the EU, the Alpine state, saying on Tuesday.

The EU-wide legal vacuum that has opened the way for smaller member states, in order to fill it. Small size of Malta, as the host of the block, the world’s largest online gambling industry and wider financial sector, has devised its own framework, and to attract virtual currency operators.

It is unclear whether or not Malta, and that the smaller EU member states, agreed with Le Maire and his tough stance on the bathroom Scale, and cryptocurrencies.

Reporting by Francesco Guarascio; additional reporting by Joseph Nasr in Berlin; Editing by Mark Potter and Louise Heavens

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