Finance Minister Scholz speaks out against crypto-currencies of the private sector
At the European Banking Congress, Finance Minister Scholz openly spoke out against digital currencies in the private sector. At the same time, he invited the US government to join a proposal to combat them. Can Germany keep up with the digital arms race in this way?
According to a report by Reuters, Olaf Scholz, Finance Minister and Vice Chancellor of the Federal Republic of Germany, has publicly spoken out against private crypto-currencies. He was of the opinion that the German banking system must definitely keep up with the digitalization of the monetary Bitcoin Up system. However, he does not believe that crypto-currencies of the private sector should play a role in this.
I do not support crypto-currencies of the private sector
This is what he said on Friday, November 20, at the European Banking Congress in Frankfurt. He made it clear to the members of the Congress that digital currencies like Facebook’s Libra or the JPMorgan Coin carry risks that cannot be ignored.
The European Banking Congress is one of the most renowned European congresses in the financial sector. It has existed since 1991 and aims to provide a forum for discussions on European political and financial issues. In the meantime, the EBC has become an established meeting place for high-ranking representatives from business, finance, science and politics.
And a speech before the congress is not the only measure Olaf Scholz took to fight private crypto-currencies. He also invited the new administration of U.S. President-elect Joe Biden to join a Franco-German proposal aimed at managing the risks of private sector currencies.
Is Germany proud to lose the digital arms race?
Berlin has been trying to work with European and international allies for some time. The aim is to prevent crypto-currencies from becoming parallel currencies of the regular financial system. The exact implementation is not yet clear, despite a draft law on the introduction of electronic securities.
Thus the legislators were criticized already more frequently due to negligent regulation of crypto currencies. So for example of the Bitkom, the Federal association for information economy, telecommunications and new media. There one demanded already last year a concrete conversion plan for the Blockchain strategy of the government. For a healthy growth of the Bitcoin ecological system in Germany it needs also a clear legal basis, so the demand.
While the Federal Republic of Germany is struggling to regulate crypto-currencies, nations like China welcome the technology with open arms. There, they are already testing a digital CBDC in retail. The Bahamas are already one step ahead. Here the Sand Dollar, the CBDC of the Bahamas, is already available for 393,000 inhabitants.