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German Finance Minister: Facebook’s Libra coin will undoubtedly be rejected

  • German policymakers are to following in France’s footsteps and reject market-relevant private stablecoins.  
  • Libra’s crypto project does not intend to form a new currency, Calibra’s head claims.  

During a panel discussion in Berlin, German Vice-Chancellor and Finance Minister Olaf Scholz said that Facebook’s planned crypto coin Libra will undoubtedly be rejected. He said:

“We cannot accept a parallel currency. […] You have to reject that clearly.”  

As per a document, German regulators are working with their European and international allies to ensure stablecoins will not become alternatives to traditional currencies. The report stated:  

“The Federal Government will work at European and international level to ensure that stablecoins will not become an alternative to official currencies.”

The German government has previously opposed Facebook’s Libra project. Thomas Heilmann, a German parliamentarian, stated that the government will block projects like Libra. He claimed that the authorities are not intending to accept any market-relevant private stablecoins, following in France’s footsteps.

David Marcus, head of Calibra, was trying to diminish the perception of Libra during a meeting between Libra founders and 26 global central banks in Basel. Marcus specified that Libra doesn’t aspire to form a new currency but rather build a “better payment network and system running on top of existing currencies.” He pointed out that there is no new money creation, which will “strictly remain the province of sovereign Nations.”

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