Since the announcement, the Libra project from Facebook has faced so many issues and sparked a number of controversies. First it was the legal issues and then the company witnessed the leaving of many backers. Adding problems to the bundle, Olaf Scholz, the German Finance Minister, has said that Facebook Libra has to be ‘prevented’ for the overall good for the economy. Olaf Scholz made this comment when he was talking to reporters before the meeting of International Monetary Fund and World Bank. He added that he is very skeptical about Libra stablecoin and other stablecoins for that matter.
“The German official said he was “highly skeptical” about Facebook’s plans, adding, “We will carefully monitor the situation with all the means at our disposal. I am not in favor of the successful creation of such a world currency because that is the responsibility of democratic states.”,” reads the report from Thomson Reuters, who quotes Olaf Schulz. It should be noted that this German lawmaker is not the only one who is opposing the Libra project. Last week, a report from the Group of Seven wealthy nations said that stablecoin projects like Libra should not be allowed.
Out of the many things he talked about, Olaf Schulz was quite clear about the claim that stablecoin projects like Libra would be a major threat to the global financial system. While the Finance Minister acknowledged the fact that a financial reform is long overdue, he does not believe cryptocurrency is the answer. Even in a case when cryptocurrency is the answer, he believes, proper governmental control is required. It’s also worth noting that the whole attack from Olaf Schulz was targeted towards Libra and no other cryptocurrencies like Bitcoin. It is digestible that the world economy considers a project from Facebook as Libra as a real threat.
