German Government is strongly opposed “parallel” cryptocurrencies like Facebook Libra
German finance minister Olaf Scholz issued a statement that the government is extremely negative about the appearance of parallel currencies like Facebook Libra on the market. The federal government will prevent any attempt to launch and promote such cryptocurrencies in every possible way, he said. Facebook Libra is classified as a stable cryptocurrency. This means that Libra is provided not only with investor deposits but also with government obligations - gold and foreign exchange reserves and securities. In the process of Facebook Libra representatives and lawmakers discussing, Olaf Scholz said that the federal government would not agree with the parallel currency and would reject it anyway. A comprehensive strategy to accelerate the digital transformation of the German domestic market will be finally agreed and adopted on the cabinet meeting, which is planned for today. The government will take measures that will protect the economy from risks connected with possible negative consequences from the introduction of such technologies. The strategy provides close cooperation with EU partners to prevent “parallel” cryptocurrencies from becoming an alternative to existing state currencies. The France government actively supported Germany's principled position, suggesting cryptocurrencies like Facebook Libra are a real threat to the financial market. Meanwhile, the European Central Bank continues to develop its own digital currency. The developers of this long-term project assure that after its implementation, Facebook Libra and similar cryptocurrencies will lose their relevance forever.