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.”