August 9, 2020

Hit Libra: Germany won't let cryptocurrencies become real money

Hit Libra: Germany won't let cryptocurrencies become real money
Germany will not approve Libra

German authorities will not allow cryptocurrencies like Libra from Facebook to catch up with traditional currencies. Nevertheless, the German government will explore the prospects for a national cryptocurrency.

Germany vs Libra

According to Reuters, German Finance Minister Olaf Scholz said that the German authorities will not allow stablecoins, including Libra, to replace traditional currencies.

"We cannot accept parallel currencies. We must reject them."- Scholz said at a conference on Tuesday.

According to the minister, the German authorities will work with their European and international colleagues to prevent cryptocurrencies from catching up with "official currencies."

On the other hand, the minister promised to "strengthen the dialogue" with the central bank of the country regarding the prospects of issuing a national cryptocurrency.

  • Last week, the head of the French Ministry of Economy and Finance said the country wouldn’t “let Libra enter European land”
  • Before him, concerns about the Facebook project were expressed by a member of the board of the European Central Bank, Yves Mersch. According to him, Libra may undermine the foundations of the monetary policy of the regulator