[ad_1]
The German government will approve its blockchain strategy proposed in September, which would block projects such as Facebook's Libra cryptocurrency.
Germany prepares its anti-balance response
according to SpiegelThe German Federal Cabinet will approve the blockchain strategy announced in June 2019.
While this decision signals the country's intention to be part of the new global economy, the government-run "federal chain" may sound the death knell for Libra in Europe.
Thomas Heilmann of the center-right Christian Democratic Union (CDU) said that the German legislative coalition had already reached an agreement to prevent the operation of any "private information fund relevant to the market".
Commenting on the case, Heilmann said:
Until now, the economy has managed to counter crises and inflation with the measures taken by central banks. Once a digital currency provider has dominated the market, it will be very difficult for competitors.
Rather than seize Libra on the German market, the authorities seem to be in favor of creating a digital currency backed by the state, which will pass through the Bundes chain.
Part of the blockchain strategy proposed by Germany is to create a framework for cryptographic startups in the country. As previously indicated by Bitcoinist, Bitbond in May 2019, launched the first ever offering of regulated safety tokens (STO) in Germany.
According to Heilmann, the German authorities are hoping that the blockchain strategy will help local crypto-computing startups to gain competitive advantages over their foreign counterparts.
However, there is little information on how a government-run federal chain will encourage private participants.
Europe does not want to have anything to do with Facebook's cryptocurrency
For Alex Krüger, a cryptosystem analyst, other countries may soon begin to copy the German approach to the emerging sector of cryptocurrency and blockchain technologies.
A little more color on the strategy / legislation proposed by Germany regarding blockchain (http://t.co/IxrogqbDin)
– Alex Krüger (@krugermacro) September 13, 2019
Germany is part of the growing list of countries trying to block Facebook's cryptocurrency.
Friday, September 13, 2019, the French Minister of Finance, Bruno Le Maire, said that the country would work for the blockage of Libra in Europe.
Echoing sentiments similar to those of Heilmann, The Mayor has assumed that Libra poses a threat to the economic sovereignty of Europe.
In China, the central bank is accelerating its efforts to launch the country's digital yuan project. This move is also part of China's plan to block Libra.
Meanwhile, the Libra Association is continuing its plans to launch the cryptography project. The Association recently requested a payment license from Swiss regulators.
How will a federal government-run chain provide economically viable incentives to private participants? Let us know in the comments below.
Images via Shutterstock, Twitter @ krugermacro
[ad_2]
Source link