German finance minister raises alarm on Libra cryptocurrency

Huawei

There are signs that Germany could double down its pressure on Facebook’s Libra digital currency to be fully regulated under the existing financial frameworks.

Germany’s Finance Minister, Olaf Schol, warned that regulators must ensure that cryptocurrencies such as the proposed Facebook Libra do not endanger financial stability and consumer privacy.

In a statement credited to him by Reuters, Olaf said: “The issuance of a currency does not belong in the hands of a private company because this is a core element of state sovereignty,” Scholz said ahead of a G7 meeting in France later this week.

“The euro is and remains the only legal means of payment in the euro area,” Scholz said. Berlin was coordinating its efforts internationally with its allies to ensure financial stability, consumer protection and the prevention of entry-gates for money laundering and terrorist financing,” he said.

Facebook plans to launch Libra in 2020 to facilitate global payments particularly targeting over 1.7 billion unbanked population.

However, there are various concerns raised from Washington to Berlin about the consequences of such a distributed ledger payment system on the traditional global financial system