This Wednesday German Chancellor Angela Merkel’s cabinet approved a strategy to prevent the issuance and turnover of alternative currencies, like stablecoins, that are “threatening state sovereignty,” Reuters reports.
In accordance with the comprehensive strategy, the German government has committed to fight “any company efforts to establish a parallel currency.” Minister of Finance Olaf Scholz shared the government’s strategic goals, arguing that the security of citizens and the sovereignty of states are being threatened by stablecoins:
“A core element of state sovereignty is the issuing of a currency, we will not leave this task to private companies.”
At the same time, the minister added that blockchain technology could significantly contribute to future prosperity, and the government has to ensure that the country is “at the forefront” of development and will “ further strengthen Germany as a leading technology location.”
In order to achieve these goals, the German government plans to propose new legislation to allow the introduction of blockchain-based and electronic bonds, therefore, it plans on renewing dialogue with Bundesbank to explore the possibility of introducing central bank-issued digital money (CBDC).
While France and Germany are blocking the Facebook-led Libra stablecoin, the blockchain community has been expressing doubts about the motivation behind these actions. Despite being in the crosshairs, Libra Association management claims they are still on track to launch Libra coin by the end of 2020.