Germany joined France in the forefront to resist the launch of Facebook’s Libra in Europe as on Wednesday it passed a comprehensive blockchain strategy to push back the establishment of any parallel currency.

Reported by Reuters, the strategy was passed by Chancellor Angela Merkel’s cabinet to boost the digital transformation of its economy, but at the same time also to mitigate the risks of digital currencies.

London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now

“We want to be at the forefront and further strengthen Germany as a leading technology location,” Finance Minister Olaf Scholz said.

“At the same time, we must protect consumers and state sovereignty…a core element of state sovereignty is the issuing of a currency, we will not leave this task to private companies.”

Suggested articles

B2Broker Extends its Multi-Asset Liquidity Pool with Tools for BrokersGo to article >>

The strategy also specified the threats on the economies from the stablecoins, especially Facebook’s Libra, and Germany wants to act as a liaison between European and international regulators to prevent such threats.

A hostile environment in Europe against Libra

Last week, French Finance Minister also revealed the country’s plans to block the development of Libra in Europe, citing the threats of the digital currency to the existing “monetary sovereignty.”

“All these concerns about Libra are serious. I, therefore, want to say with plenty of clarity: in these conditions, we cannot authorize the development of Libra on European soil,” French Finance Minister Bruno Le Maire said.

After the harsh comments, Libra’s head David Marcus came out in defense of the proposed digital currency and clarified that Libra is not a threat to the monetary sovereignty of any nation.

The digital currency project of the social media company is also seeking a payment system license from the Swiss Financial Market Supervisory Authority (FINMA). However, the Swiss regulator clarified that it can only check anti-money laundering measures of the project and project of such scale need green lights from global regulators as well.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.