German Finance Minister Olaf Scholz said policymakers could not accept the emergence of parallel currencies such as Facebook’s planned Libra, adding that Berlin would reject any such plans.
Facebook’s planned Libra is the most well-known of the stablecoins, a form of Cryptocurrency backed by assets such as traditional money deposits, short-term government securities or gold. “We cannot accept a parallel currency,” Scholz said during a panel discussion in Berlin. “You have to reject that clearly.”
The German cabinet is expected to adopt a comprehensive Blockchain strategy on Wednesday, aiming to boost the digital transformation of its economy while also tackle risks stemming from such new technologies. In its Blockchain strategy, Berlin says it will liaise closely with its European and international allies to prevent stablecoins from becoming alternative currencies, according to a government document seen by Reuters.
France and Germany believe that Facebook’s Libra currency posed risks to the financial sector that could block its authorization in Europe, and backed the development of an alternative public cryptocurrency.