A fresh report from a German magazine reveals that Germany may deny Libra. This comes just days after France’s finance minister made a similar claim. As such, it would appear that Libra could face growing opposition in the European Union.
German parliamentarian may block Libra in Germany
This latest piece comes from the German weekly news outlet Spiegel. According to the article in question, a parliamentarian for the German Cristian Democratic Union (CDU) party, Thomas Heilmann, has said that projects akin to Libra will be denied in Germany.
According to Heilmann, the German “grand coalition” which enables its governing supposedly set up guidelines for crypto. Furthermore, he also said that the grand coalition had agreed “not to allow market-relevant private stablecoins” after some consideration.
“Up to now, the economy has done a great job in countering crises and inflation with measures taken by central banks. Once a digital currency provider dominates the market, it will be quite difficult for competitors.”
No matter how crypto supports feel about the legitimacy of Heilmann’s comment, this seems to be the federal government’s reasoning. Nonetheless, this report also says that the federal government does, in fact, have some plans for crypto adoption,
Specifically, the federal government of Germany has reportedly included the development of a state-run digital currency in its blockchain strategy. As such, it would seem that there is still some hope for wider blockchain adoption – even though the situation looks bleak for Libra.
Swiss officials instead look forward to Libra
These claims are only exacerbated by the fact that France’s finance minister, Bruno Le Maire, recently made similar comments. With the road to the European Union’s two largest markets – in a post-Brexit scenario – seemingly closed, Facebook could face difficulties with Libra.
Nevertheless, Switzerland is a European country that is seemingly embracing the prospect of Libra. The director of the Swiss Financial Market Supervisory Authority, Mark Branson, recently said that international cooperation and consultation is critical for Libra, and that Switzerland has already sought to begin this.
”Our first contact with the initiators took place after the decision for Switzerland had already been made and communicated. That’s positive. The ‘jurisdiction shopping’ you alluded to would be very sensitive. It would put pressure to get as loose as possible standards.”
With that said, Branson indicated that Libra may have a future in Europe, as long as regulatory questions are answered. The latest comments by Heilmann, however, suggest that the European Union may not be overly excited for it.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.