The Federal government does not want to allow Facebook-crypto currency Libra

The Federal government does not want to allow the Facebook to the leading crypto currency Libra, according to a report by mirror Online from 13.09.2019.

A further brake pad for Libra

Already in the next year, Facebook launched “Stable Coin to come” on the market. Besides Facebook, other companies are involved in the development. The Libra Association consists of different companies, non-profit and multilateral organizations, including Ebay, Spotify, Coinbase, and Uber.
Yet so smoothly was the introduction in the next year will not be lost. Just yesterday, Coin Update reported on the setting of the French Finance Minister, Bruno Le Maire, compared to Libra. That said, France wants to block the development of the project in the country. Le Maire believes that such a payment could threaten the monetary sovereignty of the country.
Also, the Federal government is now against Libra. As Spiegel Online reported, said the CDU parliamentarian Thomas Heilmann, that you are not to allow in the Grand coalition agreed on the “market-relevant private stablecoins”.
Unlike it is the case of Bitcoin, the case is not determined by the price of the Libra-Coins by supply and demand. Libras value is tied to a basket of currencies, making the Libra Coin in the category of “Stable-Coin” is to classify it.
Further, Heilmann said:

“The economy has dominated so far, very good that we have met crises and inflations by actions of the Central banks […] once a provider of a digital currency, the market, is it for competitors is quite difficult.”

Government crypto-currency

That the Federal government Libra is not welcome, is not to be understood as a General aversion to crypto-currencies. As the SPON report, could imagine the Federal government a “state of stable crypto-currency,” quite. Also the speech is of a public Blockchain called the “Covenant Chain”. In addition, the Federal government envisages in its “Blockchain-strategy” a possible facilitation in terms of funding opportunities and investments in companies, for Startups, for example, through public token sales.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.