German Finance Minister is Against Projects Like Facebook’s Libra

Germany’s federal finance minister Olaf Scholz has opposed private currency projects like Facebook’s Libra, but nonetheless supported of digitizing the euro. 

Minister said that the e-euro would be good for Europe’s financial system, particularly in the wake of economic globalization.

“Such a payment system would be good for the 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,” Scholz explained.

Like the other European leaders, Scholz argued “the publication of a currency is a core element of state sovereignty” and Governments must not share this function with private companies.

As previously reported, Financial regulators  have the reputation of been critical of the Facebook crypto, which may pose a threat to global financial stability in their view. The heads of the companies are concerned about how Facebook manages the private date of its users. France and Germany have pledged to block the cryptocurrency.

Visa, MasterCard, PayPal and Stripe, that have joined Facebook Inc. as founding members of the Libra Association, are wavering over whether to officially support the crypto project. Lack of support from key payment systems can have serious consequences for Facebook, it would be difficult to persuade users to replace their national currencies with Libra.