German Nation Goes All Out to Stop Illicit Digital Coins

The German nation recently passed a strategy that handles blockchain and digital coins comprehensively. It also vows against parallel financial systems commenced by corporations.

Germany is now doubling down on its idea to stop parallel currencies. This was after agreeing to ban Facebook’s Libra digital coin.

German head of government Angela Merkel together with her cabinet approved a comprehensive blockchain strategy on Wednesday.

The government considers that the economy must make use of digital changes.

However, they must also be mindful of the dangers arising out of these technologies.

Finance minister Olaf Scholz indicated that blockchain technology might possibly become the starting point for the internet of the future.

He also said, “We want to be at the forefront and further strengthen Germany as a leading technology location. At the same time, we must protect consumers and state sovereignty.”

Moreover, “A core element of state sovereignty is the issuing of a currency, we will not leave this task to private companies.”

Meanwhile, the government also wants to work in tight cooperation with its European and global peers.

This is to ensure that digital coins don’t end up becoming alternative currencies.

Berlin will also focus on a discussion with Bundesbank, the German central bank.

They will be talking about a computerized version of the central bank currency and the possible consequences of such digital coins.

Germany’s Shift Is A Danger to Facebook’s Libra

The German government has a whole plan to deal with growing issues with digital currencies.

However, it plans on creating electronic bonds in the domestic market that will be circulated on blockchains.

The government, alongside France, has already guaranteed to outlaw Libra.

The French authorities have also implemented a highly critical stance on Facebook’s Libra.

Moreover, they are also looking forward to introducing a computerized legal tender of their own.

Meanwhile, the European Central Bank is on the steps of creating a free digital currency, backed by central banks.

This digital coin would eliminate the need for Libra.

Francois Villeroy de Galhau, a member of the ECB board, indicated that Libra emphasized the gaps in European regulations and said that the company would be treated with a strict approach.