September 20, 2020

German parliament considers bitcoin defective money

German parliament considers bitcoin defective money

The Bundestag said that existing cryptocurrencies, such as bitcoin, only very limitedly perform the economic functions of money.

German Parliament indicates that the volumepayments made using digital currencies is insignificant compared to fiat. The document also says that cryptocurrencies are not suitable for accumulation and savings due to high volatility.

Responding to a request from the Free Democratic Party, parliament also touched on stablecoins who are trying to resolve the issue of conservation value by providing real assets. According to parliament, the federal government will not allow stablecoins to become an alternative to state currency, starting to threaten the existing monetary system.

Despite the fact that the country's leadership is skeptical of independent cryptocurrencies, the German Ministry of Finance supported the issue of digital euro.

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