The Strategist

Germany approves blockchain regulation strategy, private stablecoins to be banned

09/19/2019 - 10:07

The German government has approved a blockchain regulation strategy. The document effectively bans circulation of alternative money in the country. The ban also applies to Facebook’s stablecoin Libra, Reuters reports.

BTC Keychain via flickr
BTC Keychain via flickr
Information that Germany is working on a blockchain regulation strategy appeared in mid-March. While developing the strategy, the government relied on opinions of specialists from various fields of industry.

Germany was supposed to present the strategy in the summer, but this did not happen. This time, perhaps, the government has been spurred by appearance of the stablecoin Libra, which almost all European regulators are currently fighting.

Last week, Germany said it would block development of Libra and other private stablecoins in the country. Thomas Heilmann, who is responsible for developing the regulatory strategy, said that private digital currency providers can offset all efforts to counter the financial crisis and inflation with their actions.

In fact, Germany joined France in an effort to limit Libra's turnover in Europe. Recall, French Finance Minister Bruno Le Maire said that his country would block development of stablecoin from Facebook. He also proposed creation of a digital currency in the European Union controlled by central banks.