September 21, 2020

German Parliament: “Cryptocurrencies will never be an alternative to money”

The German Federal Parliament (Bundestag) said that Bitcoin and other cryptocurrencies will not be able to become money and capital accumulation.

Members of the Buntestag concluded that digitalassets present in today's cryptocurrency market have only a partial set of characteristics inherent in traditional money. Among them were indicated the possibility of exchange, making ubiquitous purchases, as well as real value.

According to deputies of the Bundestag, given incollectively, all these properties of fiat currencies, cryptocurrencies lose to them, since most of the payments are made in ordinary currencies. In addition, the constant fluctuations of cryptocurrency rates are the main obstacle to the massive introduction of crypto assets. Even stablecoins tied to state currencies and secured by physical assets cannot be considered a full-fledged means for making payments.

“The stablecoins are not an alternative to national currencies, otherwise the world monetary system will be compromised,” the deputies of the German parliament say.

The German government recently stated thatit does not have a clear answer whether Facebook's Libra cryptocurrency complies with German law. According to German authorities, the technical documentation of Libra does not provide exhaustive information about the project, so they opposed the launch of this cryptocurrency.

Germany decided to counteract in Septemberthe release of corporate currencies on the blockchain. However, this month, German Finance Minister Olaf Scholz proposed creating a digital euro to keep up with the US and China in developing the latest technologies.

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