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Germany’s Scholz: We do not accept the parallel currency, such as Facebook’s Scale

BERLIN (Reuters) – germany’s Finance Minister, Olaf Scholz, said on Tuesday the decision-makers could not agree on the creation of a parallel currency, such as Facebook, planned Balance, adding that Berlin would reject such a plan.

FILE PHOTO: German Vice-Chancellor and the Finance Minister, Olaf Scholz looks on, during the “Open Door Day” of the Federal Ministry of Finance in Berlin, Germany, on August 17, 2019. REUTERS/Annegret Hilse/File Photo

Facebook is scheduled to Scale, it is the most well-known of the stablecoins, a form of cryptocurrency backed by assets, as well as the traditional cash deposit for short-term government securities, gold or platinum.

“No, We can’t agree on the parallel currency,” Scholz said during a panel discussion in Berlin, germany. “You have to reject it, that’s for sure.”

The German government believes that a all-encompassing blockchain’s strategy on Wednesday, which stimulates the digital transformation of the economy and addressing the risks, as a result of these new technologies.

In the blockchain, strategy, Berlin, germany, says it will liaise closely with the European and other international allies to ensure that the stablecoins from becoming an alternative currency, according to a government document seen by Reuters.

“The Federal Government will work at European and international level, in order to ensure that the stablecoins will not grow to be an alternative to the official currency,” the document said.

In berlin, it will intensify the existing dialogue with the Bundesbank, the German central bank with regard to the digital central bank money in order to explore the current status of the development and the potential risks associated with, the document said.

The government will also propose legislation this year, with the introduction of the blockchain-based, electronic notes, and the document will be displayed.

France and Germany on Friday said that Facebook is the Scale of currency has been subject to the risks of the financial sector, which could block its approval in Europe and to support the development of an alternative to a public cryptocurrency.

The criticism came as the European Central Bank has said that it is working on a long-term plan is to launch a public digital currency is that it would be able to create projects, such as a bathroom Scale would be superfluous.

On Tuesday, ECB board member, Francois Villeroy de Galhau said in stablecoins as Facebook, the Scale is marked, the holes in the rules as well as the media giant’s payments on the project are confronted with a difficult regulatory environment.

Reporting by Michael Nienaber and Christian Kraemer; Editing by Paul Carrel and David Evans

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