The Finance Minister of Germany has said that the launch of Facebook’s digital currency libra should be stopped.
At the IMF and World Bank fall meetings in Washington, Olaf Scholz told reporters that he had significant concerns over Facebook’s libra and other digital “world” currencies.
We will carefully monitor the situation with all the means at our disposal. I am not in favour of the successful creation of such a world currency because that is the responsibility of democratic states.
The G7 countries released a report following their meeting on October 17th arguing that digital currencies like libra should not be allowed to launch due to the risks they pose on an international scale. They said stablecoins, including Facebook’s libra, have the potential to threaten the world’s monetary system and financial stability.
Olaf said there is a “need for reform” in the financial sector before digital currencies can be safely implemented.