Ever since there were even rumors of Facebook enjoying the cryptocurrency business, the company has faced several roadblocks and challenges while preparing for the launch of the Libra token next year. When the whitepaper for the token was first launched, many felt as though it was an indication that the world market was ready for a widely used cryptocurrency tied to a firm as powerful as Facebook. However, many prominent world leaders on policymakers have spoken out against Libra since the announcement was made and this has kept Facebook‘s lobbying team on their dues.
The latest of these criticisms come from German Vice-Chancellor and Finance Minister Olaf Scholz who stated in a recent panel discussion in Berlin that Facebook’s Libra token and other parallel currencies will be rejected within Germany.
This was reported on September 17, 2019, with Olaf stating that Germany cannot accept any parallel currencies and that a strong statement must be made as to their rejection. According to official documents in the report, German lawmakers are working closely with international authorities to make sure that stablecoins do not become an alternative to fiat currency and there are worries about economic and political stabilization as a result of that.
“The Federal Government will work at European and international level to ensure that stablecoins will not become an alternative to official currencies,” the document says.
This is not the only criticism of Lobra that has come out of Germany in the last few weeks as Thomas Heilman, a parliament member in Germany, stated that the government will clearly block any market-relevant private stablecoins such as Libra from taking foot within Germany and also reiterated that they will not be following in France’s footsteps. The biggest criticisms of Libra so far seem to be concerned about its widespread use, its possible applications in crime and that it might destabilize governments.
However, David Marcus, who is the head of the Libra project, stated in a recent meeting in Basil that Libra is not here to destabilize in the existing world currencies but rather to build upon them and create a stable payment system that will benefit users across the world.