German finance minister: Facebook’s Libra cannot compete with the euro

German finance minister: Facebook's Libra cannot compete with the euro

The German finance minister, Olaf Scholz, has become involved in the media turmoil surrounding Facebook ‘s cryptocurrency efforts according to an article from Reuters.

Following the example of other public officials who have made critical comments in recent days, Scholz called on regulators to investigate Facebook’s Libra project. Scholz has expressed concern about consumer protection and the potential disruption in the euro zone.

The German finance minister, Olaf Scholz said:

The euro is and remains the only legal payment method in the euro area. The issuance of a currency should not be in the hands of a private company, as this is a core element of state sovereignty.

This point corresponds to the comments made by the French finance minister, Bruno Le Maire, following the unveiling of Libra. Bruno Le Maire said the following:

It is impossible that Libra may be allowed as a sovereign currency. It can’t and it can’t happen.

Scholz further claims that the introduction of readily available crypto and digital currencies, such as Bitcoin and Libra, could undermine EU monetary policy. Moreover, according to the politician, “the issuing of currencies simply does not belong in the hands of private companies”.

On July 1st, Agustin Carstens, head of the Bank for International Settlements (BIS), emphasized that the BIS supports global central bank efforts to explore and develop digital currencies based on national fiat currencies. He also stressed that the bitcoin is no alternative to national currencies.

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About Shawn Morrison 203 Articles
One of the founders of BitzArena. Active with crypto currency since the rise of the bitcoin. Loves the innovative character of crypto and blockchain technology, and follows developments in the market closely. Likes to connect technology with business, and likes to make difficult concepts accessible to a wide audience.

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