Vows to block Libra-like currencies

  • Stablecoins such as Libra will not be allowed by Berlin to function as alternative currencies.
  • The new blockchain strategy implementation will boost the blockchain transformation in Germany.

The German Cabinet has passed the blockchain strategy set for implantation. However, the Finance Minister Olaf Scholz made clear on Tuesday that currencies taking the form of Facebook’s Libra will not be used as alternatives to the current currency system in Germany.

“We cannot accept a parallel currency. You have to reject that clearly,” Scholz said during a panel discussion in Berlin.

The blockchain strategy given a go-ahead on Tuesday aims at boosting the digital transformation in Germans economy. Moreover, it will help to curb risks that come with new technologies such as blockchain.

Reuters cited a government document on Tuesday that said that Berlin was going to work closely with its allies from Europe and the international space to ensure that stablecoins do not disrupt the current fiat system.

“The Federal Government will work at European and international level to ensure that stablecoins will not become an alternative to official currencies,” a section of the document stated.



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