Major economies raise red flags over Facebook’s Libra

French Finance Minister Bruno Le Maire said the proposed French tax on tech giants would stand until the G7 reaches an agreement on taxing digital business. (AP)
Updated 19 July 2019

Major economies raise red flags over Facebook’s Libra

  • Facebook has proposed creating Libra as a cryptocurrency that is pegged to existing currencies to make it more stable than the likes of Bitcoin

CHANTILLY: Top finance officials from the Group of Seven rich democracies are warning that cryptocurrencies such as Facebook’s Libra should not come into use before “serious regulatory and systemic concerns” are addressed.

The chairman’s concluding summary from the G7 meeting in Chantilly, France, says the officials agreed that so-called stablecoins — cryptocurrencies pegged to real currencies — will have to meet “the highest standards” of financial regulation to prevent money laundering or threats to the stability of the banking and financial system.

The statement says finance ministers, including French host Bruno Le Maire and US Treasury Secretary Steven Mnuchin, agreed that those concerns must be addressed “before such projects can be implemented.”

Facebook has proposed creating Libra as a cryptocurrency that is pegged to existing currencies to make it more stable than the likes of Bitcoin, so that it can used as a way to pay for things. Governments around the world are rushing to assess how that would affect the economy.

Le Maire said that the G7 officials noted that while stable cryptocurrencies such as Libra could reduce costs for transfers and help provide financial services to underserved communities, they would need to be accountable to governments, not just corporations. Libra could, for example, facilitate money laundering and terrorist financing and influence the value of established currencies.

The views echo criticism from US lawmakers this week, who in hearings in Washington said they cannot trust Facebook with a big project such as Libra after recent data privacy scandals.

The G7 summary says that the countries also expect the outlines of a global agreement on taxing digital business by next January. It said the agreement would allow companies to be taxed in countries where they have no physical presence and provide for an arbitration forum.

The US and France in particular are at odds on the issue after Paris said it would put a 3 percent tax on tech giants like Facebook and Google that are typically based in the US. Mnuchin objected to the plan when meeting with Le Maire.

Le Maire said that the current agreement needed to result in a final decision before France could withdraw its tax, but that the process was moving “in the right direction.”

The G7 finance meeting will set the stage for a summit of the countries’ heads of state and government in August. Beyond the US and France, the G7 includes Germany, Britain, Italy, Japan, Canada and representatives from the EU.


Jubilant cheers as Dubai begins one-year countdown to Expo 2020

Updated 20 October 2019

Jubilant cheers as Dubai begins one-year countdown to Expo 2020

  • Dubai prepares for eye-catching countdown on Burj Khalifa
  • Live performances from singer Mariah Carey and acclaimed Emirati singer and Expo 2020 ambassador Hussain Al-Jassmi

DUBAI: Crowds gathered at different locations in the UAE on Sunday night to mark its one-year countdown to Expo 2020 in October next year, with host emirates Dubai staging a spectacular concert, topped by a light projection on the iconic Burj Khalifa.

American superstar Mariah Carey was the star of the night, which also saw performances from regional artists including Khalifa, Shamma Hamdan, Abri and Funk Radius, Showcase and Jaysus Zain. The audience also grooved to a few Arabic tunes from Emirati singer Hussain Al-Jassmi.

A make-shift stage was set up at the Burj Park in Dubai’s downtown area to host the performances, while people also enjoyed a good view of the tallest building in the world. The countdown was facilitated by Emirati social media sensation Khalid Al-Ameri and Bollywood actress Shraddah Kapoor. 

A 3-minute firework display lit up the skies of Dubai as the crowd eagerly waited for Carey to appear on stage.

The 49-year-old singer sang her all-time favorite songs, including “Emotion,” “We Belong Together,” and a revival of the Motown classic “I’ll Be There,” to an enthusiastic audience who didn’t mind the heat and humidity at the outdoor venue.

The other six emirates also marked the occasion with free-for-all activities in venues such as the Louvre Abu Dhabi, Al Majaz Waterfront in Sharjah, Ajman Museum, Umm Al Quwain Corniche, Al Qawasim Corniche in Ras Al Khaimah and Fujairah Fort.

The events, Minister of State for International Cooperation and Expo 2020 Director-General Reem Al-Hashimy said, will “offer a window into the once-in-a-lifetime celebration that awaits from October 20, 2020.”

“The next 12 months will see us put the finishing touches to ensure an exceptional World Expo,” she added, in a report by state-run WAM.

The Louvre Abu Dhabi featured YouTube sensation Sandra Sahi, as well as singers Stephon Lemar, Layla Kardan, the Emirati Trio.

Indian band ROOH, singer and pianist Clarita de Quiroz, Egyptian oud player Rami Zaki and other regional artists were celebrating the count down at Sharjah’s Al Marjaz waterfront.

While the Ajman Museum hosted Arabic fusion band, pop-rock musician Hydyy, Emirati soul singer Chakram, poet Storm Fernandes, artist Humaira Hussain and MC Mohammed Enaba.

The 6-month Expo 2020, to be held at a vast new site in the south of Dubai, will officially open on Oct. 20 next year, with organizers expecting an estimate of 25 million visitors.