German finance minister Olaf Scholz has legally joined up with the media fracas encompassing Facebook’s cryptocurrency initiatives , as per a Reuters report.
Echoing other public authorities who have hit crucial tones in present days, Scholz asked regulators to analyze the social media company’s Libra project. Scholz allegedly lifted concerns regarding consumer protection along with the potential disruption in the eurozone.
He was cited as stating :
“The euro continues to be the only legal means of payment in the euro region .”
This point is in line with feedback made by France’s finance minister, Bruno Le Maire, following Libra’s unveiling.
“It is out of question’’ that Libra be permitted to “become a sovereign currency,” he stated during the time. “It can’t and it should not occur .”
The arrival of widely-accessible electronic resources may tamper with states’ potential to deal with their economies via monetary policy, as per Scholz. “The issuance of a currency does not belong in the arms of a private firm since this is a primary element of state sovereignty,” Scholz stated.
In June, Markus Ferber, a member of the European Parliament, also called for regulatory scrutiny of Facebook to cease the multinational from operating as a “shadow bank .”
Scholz alluded to endeavors underway by German authorities and their allies to “ensure financial stability, consumer protection and the elimination of entry-gates for money laundering as well as terrorist financing,” Reuters reports. As previously disclosed, a global regulatory task force was set up between the Group of Seven (G7) nations.
This public address from a European authority comes as the U.S. Senate Banking Committee hears testimony concerning Facebook’s exploration of cryptocurrencies.