Facebook’s lobbying team has had its work cut out for them in the last few months as they have been traveling all over the world and meeting with prominent leaders to get regulatory approval for the Libra token which is due to launch in a few months. The token has been fairly controversial since the white paper was released with several prominent politicians denouncing it, Facebook being forced to defend it in Congress as well as having to navigate the complex regulatory landscape across the globe.
Unfortunately, it seems Facebook‘s lobbying team will have yet another challenge as it was reported on September 13, 2019, that Christian Democratic Union (CDU) parliamentarian Thomas Heilmann has publicly denounced the Libra token and has condemned the approval of the token in the European Union.
His condemnation is somewhat ironic considering that Heilman is responsible for the Christian democratic union blockchain policy as well as Christian social union policy in Bavaria which is due to be approved this month. However, he has stated that the private coalition will not allow market-relevant private stable coins.
“Up to now, the economy has done a great job in countering crises and inflation with measures taken by central banks. Once a digital currency provider dominates the market, it will be quite difficult for competitors,” he said.
It should be noted, however, that the federal governments’ blockchain policy will include some sort of state-backed digital currency and these mirrors sentiments stated by Bruno Le Marie, the French finance minister, who stated that the European Union needs its own official cryptocurrency they can rival the likes of Libra. Le Marie has also stated that he will be discussing the possibilities of this token with other European Union leaders next month as he has concerns about the libra token which includes security, its wide use and also the possible undermining of the European nations’ sovereignty.
One European country that has shown openness towards Libra is Switzerland as Mark Bronson, their Financial Markets Supervisory Authority director stated that the country is open to working with libra and providing the necessary oversight.
“Such a ‘beauty contest’ did not exist. Our first contact with the initiators took place after the decision for Switzerland had already been made and communicated. That’s positive. The ‘jurisdiction shopping’ you alluded to would be very sensitive. It would put pressure to get as loose as possible standards,” he said.