Germany Finance Minister Against Libra But Supports Digital Euro

Germany Finance Minister Against Libra But Supports Digital Euro

Germany's federal finance minister has come out in favor of digitizing the euro but is against initiatives in private currency such as Facebook's Libra.

Minister Olaf Scholz said that he is still "very, very critical" of the Libra stablecoin. An e-euro, however, would be great for the financial system of Europe, especially in the wake of economic globalization.

Such a payment system would be good for the [European] financial center and its integration into the world financial system. We should not leave the field to China, Russia, the U.S. or any private providers.
— Olaf Scholz

In relation to other European leaders, such as French finance minister Bruno Le Maire, who said France should block Libra, Scholz argued that the power of issuing currency must reside in the state's hands:

A core element of state sovereignty is the publication of a currency, we will not leave it to private companies.
— Olaf Scholz

Tech giant Apple's CEO Tim Cook recently echoed the same sentiments adding that governments should be the ones issuing currency and that Apple would not create its own digital currency.

Many U.S. lawmakers are in agreement. The head of the U.S. House of Representative Financial Services Committee Maxine Waters (D-CA) previously called on Facebook to delay the release of Libra until regulatory approval is obtained. Facebook CEO Mark Zuckerberg is still being pressed by the House Committee to testify before Congress on the subject before January 2020.

Members of the Libra Association expected to sign a formal charter in the quarter, felt the effects of such criticism. PayPal revealed last week that the firm had decided to leave the alliance citing the need for research on its own project.




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