Facebook Libra faces more backlash as Germany plans to block stablecoin

Facebook Libra faces more backlash as Germany plans to block it

The possibility of Facebook’s Libra stablecoin ever being globally introduced remains tentative, at best. Facebook had thought it was only weeks away from a full launch this summer, but an immediate and brutal backlash by regulators in several countries brought a halt to the social media giant’s plans. Germany is the latest to take a firm stance against the idea of a Facebook digital currency and this is going to have serious implications on Libra’s future.

Germany is an important financial country hub to the globe. Losing it is going to be another setback to Libra and Facebook’s options are limited. According to local German news outlet Spiegel.de, the country’s cabinet is going to approve blockchain legislation this month that will specifically prevent “market-relevant private stablecoins.” In other words, Libra will not be allowed in Germany, just as several other countries have said they wouldn’t legalize its introduction in those areas.

Thomas Heilmann, a member of the Christian Democratic Union in Germany, asserts, “Until now, the economy has done a great job in countering crises and inflation with measures taken by central banks. Once a digital currency provider dominates the market, it will be quite difficult for competitors.”

This also makes it sound like additional measures could be taken against all types of cryptocurrencies. However, all discussion currently revolves around just stablecoins. Germany has shown strong support for blockchain tech, and possibly a state-backed digital currency, and this doesn’t appear to be changing anytime soon.

France is also considering a Libra ban and wants the entire European Union to follow suit. That country’s Finance Minister, Bruno Le Maire, views Libra as a catalyst of “significant disruptions in the financial system.”

The negative attention directed at Libra hasn’t prevented some individuals from trying to offer for sale Libra investment tokens. According to an exclusive report by Finance Magnates, there is already a secondary Libra token investment market and trading is in full swing. However, the chief operating officer for Facebook’s Calibra blockchain project, Tomer Barel, says that these individuals are only offering thin air. He added, “[The tokens] don’t exist yet. If someone is selling them, it’s on their own and it’s their problem.”

The tokens are part of a group that are supposedly going to be given to the 28 members of the Libra project, the Libra Association. However, none of those tokens has yet been distributed.

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