June 18, 2024

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.

The German Parliament indicates that the scopepayments made using digital currencies are negligible compared to fiat. The document also states that cryptocurrencies are not suitable for accumulation and saving due to high volatility.

Responding to a request from the Free Democratic Party, the parliament also touched upon the topic of stablecoins, which are trying to solve the issue of preservingvalue by securing real assets.According to the parliament, the federal government will not allow stablecoins to become an alternative to government currency and threaten the existing monetary system.

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