German Finance Minister is not in support of the upcoming Facebook’s Libra Stablecoin and highlighted those parallel currency should clearly be rejected.
September 18, 2019, | AtoZ Markets – German Finance Minister Olaf Scholz conveyed the important message to the policymakers that parallel currencies such as Facebook’s Libra stable coin will be rejected.
During a panel discussion which was held in Berlin Yesterday, German Vice-Chancellor and Finance Minister Olaf Scholz said that Facebook’s planned crypto coin Libra will be clearly rejected.
He quoted that: “We cannot accept a parallel currency. You have to reject that clearly.”
According to the source, German regulators have been working closely with their European and international parties to confirm that the stablecoins will not become alternatives to traditional currencies.
The document reads: “The Federal Government will work at European and international level to ensure that stablecoins will not become an alternative to official currencies”
The German government is against Libra coin
It is not the first time when the German Government has spoken out against Facebook’s Libra stablecoin project. A few days back, German parliamentarian Thomas Heilmann stated that the government will ban projects like Libra. He was also claiming that the authorities are not planning to permit any market-relevant private stablecoins.
Opposing the German government statement, David Marcus, head of Calibra was attempting to defuse Libra’s perceived threat to the global financial system yesterday.
During the meeting between Libra founder and 26 global central banks in Basel, he pointed out that Facebook’s Libra coin project does not intend to form a new currency but the plans are to make better payment network and system running on top of already existing fiat currencies. This might deliver meaningful value to the customer all over the world. He also highlighted that there is no new money creation, which strictly remains the province of the sovereign Nation.