- Libra should not be allowed to compete the euro in the Eurozone.
- Libra and cryptocurrencies will be discussed extensively in the coming G7 Group of nations meeting.
The Finance minister, Olaf Scholz has joined other key government official from various jurisdiction around the world to comment about the intended Facebook digital currency Libra. According to a report on Reuters Scholz has called upon regulators around to study Libra cryptocurrency project.
Like other regulators and lawmakers in the United States, the finance minister raised concerns regarding consumer protection as well as the threat that Libra poses to the Eurozone.
“The euro is and remains the only legal means of payment in the euro area,” said Scholz.
Another similar comment was by France’s finance minister Bruno Le Maire who said categorically:
“It is out of question” that Libra be allowed to “become a sovereign currency,” he said at the time. “It can’t and it must not happen.”
Scholz adds:
“The issuance of a currency does not belong in the hands of a private company because this is a core element of state sovereignty.”
Also read: Cryptocurrency market update: Bitcoin plunges below $9,500, Ethereum and Ripple bleed
Meanwhile, Facebook today appeared before the United States for a hearing to organized for the lawmakers to ask questions regarding Libra. While Facebook assured the Senate of the consumer protection and as wells anti-money laundering procedures, most of the lawmakers remained skeptical that Facebook will deliver as they promise considering the company’s questionable track record with user data and privacy.
Moreover, the U.S Secretary of Treasury said on July 15 that Libra and cryptocurrencies will be discussed extensively in the coming G7 Group of nations meeting.
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