According to a recent report, the minister of finance in Germany, Olaf Scholz has joined the list of public officials criticising social media giant Facebook’s cryptocurrency Libra by calling for regulatory bodies to examine the digital asset stating consumer protection and the disruption in the eurozone as reasons.
“The euro is and remains the only legal means of payment in the euro area.”
Also, the minister of finance in France Bruno Le Maire had stated this point earlier when Libra was launched saying that:
“It is out of question’’ that Libra be allowed to “become a sovereign currency,”
“It can’t and it must not happen,” he added.
Monetary Policies Could be in Danger
Scholz further stated that the introduction of widely-accessible virtual currencies might interrupt the ability of the state to manage their economies through monetary policy.
“ensure financial stability, consumer protection and the prevention of entry-gates for money laundering and terrorist financing,”
Furthermore, Markus Ferber, a member of the European Parliament in June called for regulators to investigate Facebook so as to put a stop to making the multinational from operating as a “shadow bank.”
“Multinational corporations such as Facebook must not be allowed to operate in a regulatory nirvana when introducing virtual currencies,”
Scholz hinted at some efforts by the German authorities and their allies to “ensure financial stability, consumer protection and the prevention of entry-gates for money laundering and terrorist financing,”
Meanwhile, this new development from a European authority comes after the United States Senate Banking listened to testimony about the exploration of digital currencies by Facebook. The list of people expected to testify at senate includes:
Joel Telpner, Chair of Fintech and Blockchain Practice Group, at Sullivan & Worcester LLP, Jeff Bandman, Lecturer in Global Affairs at Yale University, and a former fintech advisor at the U.S. Commodity Futures Trading Commission (CFTC), and so on.