Facebook’s Scale cryptocurrency need to become the German minister of finance

FILE PHOTO: a Small toy figures in the painting are to be seen in the representations of the virtual currency in the front end of the Scale, the logo in this illustration picture the 21 of June, 2019 at the latest. REUTERS/dado Ruvic/Illustration

WASHINGTON (Reuters) – germany’s Finance Minister, Olaf Scholz, on Friday, doubled up his comments on Facebook in the wake of the Scale, cryptocurrency, and said, ” the creation of a new world currency is to be avoided.

Scholz, speaking to reporters as the IMF and World Bank fall meetings in Washington, d.c., cited a growing concern over such a “stablecoins” and the potential global risk that it posed.

The German official said he was “very skeptical” about Facebook’s plans, adding, “We will be closely monitoring the situation, with all of the resources that we have available to us. I am not in favor of the successful establishment of the world currency, because that is the responsibility of the states.”

The Group of Seven rich nations on Thursday released a new report, with the argument that these digital currencies ” should not be allowed to start until the in-depth and international risk types are addressed. [nL2N27300W]

In a G7 working group, said, “stablecoins”, digital currencies, are usually funded by the traditional, money, and other resources, and can pose a threat to the world’s monetary system and financial stability. The emerging technology that is largely unregulated.

At the same time, Scholz said that it was clear that some changes were needed in the financial services industry.

“There is a need for reform,” he said, pointing out that cross-border payments, in particular, need to be quicker and less expensive, but without prejudice to the autonomy of the member states.

Reporting by Andrea Shalal and Christian Kraemer; Editing by Paul Commented

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