Germany approves parallel currency blocking strategy

The German government has adopted a blockchain regulation strategy that prohibits the issuance of any parallel currencies in the country, including the Libra stablecoin developed by Facebook.

According to Reuters, the strategy was adopted in the middle of the week by German cabinet minister Chancellor Angela Merkel. Although the cabinet favors a digital transformation of the economy, he has spoken out against private digital currency companies. German Finance Minister Olaf Scholz said:

“We want to be at the forefront of technology development and further strengthen the role of Germany as a technology leader. But at the same time, we must protect consumers and state sovereignty. The main element of state sovereignty is the issue of currency, and we will not allow private companies to do this. ”

Recently, French Finance Minister Bruno Le Maire said it was necessary to stop the development of Libra in Europe, as it threatens the “monetary sovereignty” of governments. Germany also opposed the launch of Libra. In addition, a meeting of representatives of 26 central banks with the Libra team was to be held this week to address regulatory issues.