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

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  • 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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