Facebook Inc.'s cryptocurrency ambitions may be stalled by international regulators' lingering consumer protection and financial sovereignty scepticism.

On September 13, France and Germany issued a rare joint financial statement in which the two countries reiterated that the challenges around cryptocurrencies and "so-called stable coin[s]" include financial security, investor protection, money laundering and terrorism financing, data protection and financial and monetary sovereignty. The statement added that Facebook's Libra blueprint "fails to convince that those risks will be properly addressed".

While France and Germany did not outright ban Libra, which is set to officially launch in 2020, it's a warning that if those concerns aren't met, Facebook could face significant hurdles to obtaining regulators' approval. 

"It's a warning shot looking at Facebook's blueprint," noted Otterbourg privacy and cybersecurity practice chairman Philip Berg. "I think they're overacting a bit in just saying that this could somehow affect monetary power, which is inherent to their sovereignty." He explained: "Just because a lot of [money] is in [Facebook's] system at any given time, they aren't producing currency."

To be sure, Cornell Law School professor Dan Awrey noted that neither France or Germany have their own central bank anymore and the euro is regulated by the European Central Bank. Still, the statement could be stoked by various motives, such as the popularity of Facebook and Germany's unrelated anti-competition investigation into the social media company. 

"As a result, I think it's an opening bargaining gambit where they want to signal to Facebook for all sorts of reasons that this won't be an easy process," Awrey said.

In addition to France and Germany, there's been a steady chorus of international regulators saying Facebook hasn't provided enough specifics about Libra's design, after the social media giant formally announced the cryptocurrency in June.

Banking and privacy lawyers contacted for this article said they didn't expect to see more countries issuing statements similar to France and Germany, but they did add that Facebook should assume that other regulators share France and Germany's concerns.

Felix Shipkevich, principal of Shipkevich PLLC, said the U.S. isn't likely to issue a public statement after the President and Congress have already voiced strong scepticism. "I think they'll take a cautious approach. They'll want more information from Facebook."

Berg also noted that Facebook has to take the initiative in explaining to financial regulators how Libra won't displace central banks or harvest data. "I think once the regulators realise that, they will realise the potential it has to create productivity and speed up commerce and help – as opposed to threaten – the U.S. dollar or euro," he said.

Despite concerns over Libra, Awrey doesn't think there will be any new or amended laws in the U.S. accommodating Libra-like cryptocurrency in the near future. But that could change as the cryptocurrency scene expands.

Shipkevich noted that the success of Facebook's Libra could lead to more tech companies following in Facebook's footsteps and launching more cryptocurrency ventures.

"If they allow Libra to do this, what stops any other big company from doing the same?" Shipkevich asked.