Published: Sat, October 19, 2019
Markets | By Otis Pena

Facebook's Libra cryptocurrency should be prevented - German finance minister

Facebook's Libra cryptocurrency should be prevented - German finance minister

Le Maire presented the Group of Seven nation's statement on Libra, saying "no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed", including the potential for money laundering and terror financing.

Amid the chorus of USA government representatives condemning Facebook's Libra cryptocurrency project there has emerged from South Dakota a Senator actively backing digital currencies, warning the US of the risks of falling behind in innovative ideas by stifling Libra and other crypto projects. However, the finance minister acknowledged that there is a need for banking reforms to make trans-national transfers more straightforward. 'Unwelcome in Europe'French Economy Minister Bruno Le Maire said Italy, Germany and France will take further steps in the upcoming weeks to "to show clearly that Libra is unwelcome in Europe".

Scholz, speaking with reporters at the IMF and World Bank fall meetings in Washington, cited growing concern about such "stablecoins" and the potential global risks they posed.

"I favour not allowing the establishment of such a global currency because that is the responsibility of democratic states", he said.

The new report finds cryptocurrencies could become a faster and cheaper means for cross-border payments.

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That announcement was immediately trailed by news that the German government had endorsed a blockchain technique to avoid stablecoins from getting to be elective monetary forms and compromising state sway. The G7 and the European Central Bank said that if launched on a wide scale, the digital currency could threaten the world's monetary system and financial stability.

"Do we want to put monetary policy in the hands of a private company like Facebook?". He opined that there is a high probability that the stablecoins, which serve as a virtual currency backed by a reserve asset, prosper in the future as a part of the financial niche.

Still, he said he was not opposed to the creation of a digital currency, which France could develop "in a European framework".

Details: If the U.S. fails to come up with a good answer to digital currency in the next five years, the future will be China "re-wiring" a large part of the world, Marcus said in a recent interview with Bloomberg.

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