German Gov’t Speaks Against Approval of Facebook’s Libra in Europe

CoinTelegraph

The government of Germany has spoken against the authorization of the development of Facebook’s forthcoming Libra stablecoin in the European Union.

As German weekly news magazine Spiegel reported on Sept. 13, the Christian Democratic Union (CDU) parliamentarian Thomas Heilmann — who is responsible for the blockchain policy of the CDU and Christian Social Union in Bavaria set to be approved later in September — the government will deny projects like Libra.

“Not to allow market-relevant private stablecoins”

Heilmann stated that it was agreed in the grand coalition “not to allow market-relevant private stablecoins.” He further explained:

“Up to now, the economy has done a great job in countering crises and inflation with measures taken by central banks. Once a digital currency provider dominates the market, it will be quite difficult for competitors.”

The report, however, notes that in its blockchain strategy the federal government envisions the development of a state-run digital currency.

Binance Banner  

Europe’s own public cryptocurrency

Heilmann made his statement on the heels of French Finance Minister Bruno Le Maire’s allegation that Europe should consider its own “public digital currency” that could challenge Facebook’s Libra.

At a meeting of EU finance ministers in Helsinki, Le Maire said that he would be discussing the potential for a European public digital currency with his counterparts on the continent next month. He also reiterated his concerns that the proposed Libra stablecoin could pose risks for consumers, financial stability and even “the sovereignty of European states.”

Switzerland is open to Libra

Contrary to Germany and France, Switzerland’s Financial Market Supervisory Authority director Mark Branson said on Sept. 12 that the agency is open to international cooperation and oversight of the way in which it regulates Facebook’s planned cryptocurrency network.

Branson stipulated that Libra’s global significance can only be tackled through international coordination and consultation, and added:

“Such a ‘beauty contest’ did not exist. Our first contact with the initiators took place after the decision for Switzerland had already been made and communicated. That’s positive. The ‘jurisdiction shopping’ you alluded to would be very sensitive. It would put pressure to get as loose as possible standards.”

Go to Source
Author: Ana Alexandre


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

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