German minister resolutely opposes Facebook’s Libra cryptocurrency

Federal Minister of Finance Olaf Scholz has stated that policymakers should stop the issuance of Facebook’s Libra stablecoin.

At the International Monetary Fund (IMF) and World Bank (Friday) conference on Friday, Scholz emphasized that stablecoins could pose risks to the global financial sector. Minister Scholz expressed extreme skepticism about the tech giant’s plan, stating:

“We will carefully monitor the situation by all available means. I am not in favor of creating a common currency for the world because it is the responsibility of democratic countries. ”

Scholz said the current financial system is in need of reform to optimize cross-border payment systems without threatening national sovereignty.

That’s why Scholz reiterated his mid-September statement when calling on policymakers not to accept parallel currencies such as Libra stablecoins. “The Federal Government will work with Europe and globally to ensure stablecoin is prevented from becoming an official alternative currency.”

The number of “anti” Libra leaders is gradually increasing

At the latest meeting, the G-7 alliance group of 7 countries with the most advanced economies in the world has confirmed that they will not allow any global stablecoins to launch without satisfactorily addressing challenges and risks involved. The report from G7 states that once stablecoins are issued around the world, this currency has the potential to threaten financial stability and global monetary system.

Financial Task Force Chairman Xiangmin Liu said both stablecoins and the companies behind the currency will have to follow global standards for cryptocurrencies as well as traditional financial assets. As a result, more and more participating leaders expressed concern about Facebook’s Libra cryptocurrency.

French Minister of Finance and Economy Bruno Le Maire also echoed his criticism of Libra and declared he never accepted the existence of the stablecoin.