The German government will approve the blockchain strategy proposed in September, an article published by Spiegel newspaper said. Apparently, this could block cryptocurrency projects such as Facebook’s Libra, while trying to stimulate the development of digital companies.
Thomas Heilmann, a member of the Christian Democratic Union, said that Germany’s legislative coalition already has a permanent agreement to prevent the operation of any “stable cryptocurrency with a major market coverage”.
“So far, the economy has done an excellent job in combating crises and inflation with measures taken by central banks. If a digital currency provider dominates the market, it will be quite difficult for competitors, “
Legislative framework for crypto companies
Part of Germany’s proposed blockchain strategy involves creating a framework for crypto startups. According to Heilmann, German authorities hope the blockchain strategy will help crypto-local startups enjoy competitive advantages over their foreign counterparts.
Also, instead of allowing Libra to enter the German market, authorities seem to be in favor of creating a state-backed digital currency. This would work on the basis of a so-called Bundes-chain, but no concrete project details were provided.
Libra is not welcome in Europe
Since the announcement of the Libra project, negative reactions from the European authorities have accumulated. In addition to Germany, French Finance Minister Bruno Le Maire also said the country would make efforts to block cryptocurrencies in Europe.
Le Maire expressed similar sentiments with Heilmann, arguing that Libra is a threat to Europe’s economic sovereignty.
Meanwhile, the Libra Association is moving forward with its plans to launch the crypto project. They have applied for a payment processor license from the Swiss regulatory authorities.