German finance minister says Govt must reject Facebook's Libra Coin

German Finance Minister Olaf Scholz stated that policy makers cannot accept parallel currencies such as Facebook's proposed Libra stablecoin.

Prevent Stabecoins from Becoming Alternative Currencies

As reported by Reuters, September 17, German Vice Chancellor and Finance Minister Olaf Scholz said during a panel discussion in Berlin that Facebook's planned cryptocurrency Libra will be clearly rejected. He said:

"We cannot accept a parallel currency. […] You must clearly reject it. ”

According to a document by Reuters, German regulators are working closely with their European and international allies to ensure that stackcoins do not become alternatives to traditional currencies. The document allegedly read:

"The federal government will work at European and international level to ensure that stablecoins do not become an alternative to official currencies."

The German government has spoken out against Facebook's Libra project before. On September 1[ads1]3, German parliamentarian Thomas Heilmann stated that the government will block projects such as Vågen, claiming that the authorities do not plan to allow any market-relevant private stablecoins, which follow in France's footsteps.

Libra is not a threat to the global financial system

Meanwhile, David Marcus, Calibra's manager, tried to harm the Libra's perceived threat to the global economic system yesterday.

Marcus pointed out during a meeting between Libra founders and 26 global central banks in Basel that the Libra cryptocurrency project does not intend to form a new currency, but rather build a "better payment network and system running on top of existing currencies" to deliver meaningful value to users across the globe. He emphasized that there is no new money creation, which "will remain the province of sovereign nations."