Cryptos like Bitcoin (BTC) are not really money, at least according to the German Federal Parliament. According to a recent announcement, digital assets such as cryptos cannot be considered money because they lack several features that would be expected of traditional forms of money.
The official statement was given by the government to the Free Democratic Party parliamentary group. According to government officials, proper money is expected to be used in three ways to be actually considered money: it has to be a store of value, a means for payment and a unit of account.
One of the main points in which cryptocurrencies fail is that they are simply not widely used when compared to fiat currency. They have very limited uses, you cannot simply go to the nearest shop and use Bitcoin to buy coffee, as there is a large possibility that the store will not accept it.
The authors of the statement also affirmed that the high volatility is another issue that gets in the way of using cryptocurrencies as a store of value. If the price goes up and down, the value is not being properly stored, in their opinion.
Stablecoins are appointed as an attempt to solve these issues, however, the government is not very keen on them. The report affirms that the government intends to ban stablecoins from Germany to ensure that they will not work as an alternative to the existing monetary system.
The document ended by talking about Facebook’s Libra project. According to it, at the moment it was still not possible to evaluate if the asset was compliant with the German law or not. This happens because the white paper for the project was not deemed appropriate as a source to really understand how the project will work.