Germany passes a strategy to block parallel currencies, including Facebook's Libra

The German government has passed a blockchain strategy that prevents any parallel currencies to be issued in the country, including Facebook’s proposed stablecoin Libra.

The strategy has been passed today by German Chancellor Angela Merkel’s cabinet, according to a Reuters report. While the cabinet is in favor of the digital transformation of its economy, it is against private companies issuing digital currencies.

“We want to be at the forefront and further strengthen Germany as a leading technology location. At the same time, we must protect consumers and state sovereignty,” said Germany’s Finance Minister, Olaf Scholz. He added: “A core element of state sovereignty is the issuing of a currency, we will not leave this task to private companies.”

Last week, France’s Economy and Finance Minister, Bruno Le Maire, also said that the country will halt the development of Facebook’s planned Libra stablecoin in Europe because it threatens the “monetary sovereignty” of governments.

David Marcus, co-creator of Libra and head of Calibra (a Facebook company), however, recently said that Libra won’t threaten the monetary sovereignty of nations as it is designed to be “a better payment network and system running on top of existing currencies.”

About Author

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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