Facebook Led Libra Under Fire Again As German Finance Minister Remains Critical Of New Stablecoin

    Germany is still skeptical of Libra after PayPal pulls out of the association. But a Euro Coin they could get behind.

    While Libra may be having a neutral reception in Switzerland, the EU as a whole is giving the developing stablecoin an icy shoulder. This is in spite of Europe warming to the idea of an EU backed cryptocurrency.

    Olaf Scholz, Germany’s Federal Finance Minister, has come to the public showing his support for an EU backed coin. He explained that a payment system like that would only do good for European financial centers. Particularly so in the wake of the rampant globalization of the world.

    He stated that the EU shouldn’t leave this field open for other powerful countries, like Russia, the US, or China.

    However, he is extremely careful about Facebook’s Libra and the implications of having a corporation issue its currency. Scholz argued that such a power should only be used by the state, stating that a fundamental part of a sovereign state is its ability to produce its currency.

    Scholz is part of the popular opinion within the EU about this. The French Finance Minister, Bruno Le Maire, had stated that he would block Libra.

    Questions for Libra

    As a result of this rising worry and speculation Libra has faced, the European Commission has now asked Facebook and the Libra Association to answer several questions regarding the cryptocurrency. The Libra Association is the organization tasked with supervising the developing cryptocurrency.

    Valdis Dombrovskis, EU Financial Commissioner, wants to asses Libra and determine a few things. First would be if they should allow the cryptocurrency within the EU’s shores at all. And, if they do, if it should be regulated with EU’s laws, or a new form of regulation be made to help control a private company-backed cryptocurrency.

    This is bad news for Facebook, who have been receiving more and more scrutiny as the weeks go on. Last month, Libra’s founders had to go through a questioning done by 26 central bank officials. In August, Brussels’ antitrust raised their concerns about Libra, specifically it has the potential of causing competition restrictions.

    Even the US is sharing these concerns. Maxine Waters, Head of the US House of Representative Financial Committee, had urged Facebook to delay Libra until the regulators gave their approval. The House Committee is still putting pressure against Facebook’s CEO, Mark Zuckerberg, in the hopes that he will testify before Congress about the matter. The hope is it will happen before 2020.

    PayPal Pulls Out

    PayPal has recently with from Libra, stating that they wish to focus on continuing their missions and projects. They did, however, state that they remain supportive of Libra, and that they want to work together in the future.

    While this was a hard blow for the company, it may not be the last. Rumors are circulating that Mastercard and Visa want to pull out as well.

    While a rough timeframe of release went out, stating that Libra would come out in 2020’s second quarter, Mark Zuckerberg had denied this plan. He noted that the company had no deadline for release, even if their roadmap shows they’re going full speed ahead with Libra’s development.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Ali Raza
    Ali Raza
    A freelance journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali's work has been published on a number of cryptocurrency publications.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    TRON (TRX) Price Analysis (February 23)

    • The trend of the coin looks bullish in its medium-term while the short-term outlook is in a range-bound. • Patience is required at this...

    Block.One’s Beta Launch Of EOS Based Social Network Voice Raises Privacy Alarms’s Facebook asking for tons of personal data to jo Voice beta More concerning than privacy alarms is the use of data to...

    Criminal Assets Bureau Confiscates Over 6,000 Bitcoin But Unable to Sell Them

    The Criminal Assets Bureau (Cab) has confiscated 12 online accounts, wallets containing 6,000 bitcoin of a drug dealer who had €55 million (over $59.6...

    Top Medical Firms Set to Develop a Blockchain Solution to Prevent Counterfeit Drug Supply

    Top medical firms partner to develop a blockchain based solution to combat counterfeit drugs in the market. The MediLedger blockchain aims to verify...

    EOS Suffers “Major Outage” on Coinbase as Network Performance Issues Arise

    This month alone Coinbase suffered issues with EOS thrice, the exchange is still investigating the problem. Meanwhile, No blockchain is cartel resistant, but EOS’s the...

    New Jersey Introduces Bill For Crypto Firms To Obtain Licenses From State Authorities

    A New Jersey lawmaker introduces a bill to regulate the cryptocurrency and digital assets industry. The bill states each virtual asset company must obtain...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.