Germany’s cabinet has launched a stinging attack on stablecoins. The country’s finance minister suggested that it will “clearly reject” tokens like Facebook’s forthcoming Libra token, with Berlin hoping to push the rest of the international community to follow suit.
This is a key week for cryptocurrency and blockchain enthusiasts in Germany – the cabinet is expected to meet later today to finalize its “comprehensive” blockchain policy strategy.
In a worrying development for many blockchain enthusiasts, however, Reuters reports it has seen a document that will be presented at today’s meeting that states,
“The Federal Government will work at European and international level to ensure that stablecoins will not become an alternative to official currencies.”
And per the same report, Germany’s Minister of Finance Olaf Scholz told a panel discussion in Berlin (in reference to stablecoins like Libra),
“We cannot accept a parallel currency. You have to reject that clearly.”
Also included in the document to be presented to cabinet today are details about how the government will work closely with the central Bundesbank on a digital fiat project, “exploring the current state of developments and addressing possible risks.”
Watch the latest reports by Block TV.
The document also outlines Berlin’s intentions to legalize blockchain-powered electronic bonds.
Germany says it remains committed to “digitizing” the country’s economy. However, it is widely expected that the cabinet will agree to implement more legislation in addition to proposed regulations on domestic crypto wallet services. Berlin is also considering whether it wants to ask the country’s financial regulator to police crypto exchanges via a licensing system – as is currently the case in countries such as Japan.