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Reuters reported on Friday that French central bank governor Francois Villeroy de Galhau said the encryption working group will be led by ECB board member Benoit Coeure and will study how to regulate cryptocurrencies to avoid money laundering and other problems.
On Tuesday, French Finance Minister Bruno Le Maire expressed concern that Libra might replace the traditional currency and called on the central bank governor of the Group of Seven (G7) to prepare a report on the Facebook project for the July meeting.
Le Maire said at the time that Libra could not be allowed to "become a sovereign currency". "This is something that cannot and should not happen."
Villeroy said in a commentary on the matter today that France's goal is to "encourage open innovation," but it must be firm in terms of regulation.
Facebook first provided details of the Libra project on June 18 and released a white paper indicating that it has established subsidiary Calibra and a separate alliance Libra Association to develop and manage the cryptocurrency.
Libra will be a stable currency linked to a basket of fiat currencies and government-backed securities that will initially be used as a means of transferring funds globally. Ultimately, it will lead the transformation of the financial services ecosystem.
Villeroy also said that the concept of stable currency still needs to be defined by the Yao regulatory agency.
Since the Libra program was announced, other regulators, including the United States and the United Kingdom, have also talked about regulatory issues that Libra may face.
The US Senate Banking, Housing and Urban Affairs Committee will hold a hearing on the Libra issue on July 16.
Markus Ferber, a member of the European Parliament, also called for a review of virtual currency . He said, "When introducing virtual currency , companies must not be allowed to escape regulation."
The G7 Group is the richest group of advanced economies defined by the International Monetary Fund and currently includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
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