Germany: Finance minister in favour of a national digital currency

Germany might soon be making a move towards developing their very own national digital currency. Reportedly, Olaf Scholz, Germany’s Vice-chancellor and finance minister, has shown his support towards implementing a blockchain-based monetary system for the nation

As per the German financial news magazine WirtschaftsWoche, the finance minister is in complete favour of electronic currency or even a digital euro. However, he made it clear that this won’t be replacement of the fiat currency but would rather be used alongside the euro thus enhancing the financial system for Europe. He mentioned:

“Such a payment system would be good for financial centre Europe and its integration into the world financial system.”

No to private cryptocurrencies

He also revealed his scepticism towards private cryptocurrencies like Facebook’s Libra. Like France, Germany is also not too open towards implementing Libra as a payments system within the nation. Unlike a regulated currency, there are various factors at play when implementing a currency owned by a private organization. Focusing on these concerns, Scholz further stated:

“We should not leave the field to China, Russia, the US or any private providers.”

It is quite clear that Europe doesn’t want to be left behind in this technological race, the European nations are quite positive about public interest cryptocurrencies. However, will this digital revolution be led by Germany is still unclear. Just last month Germany had passed a blockchain strategy which blocks any parallel cryptocurrencies to be issued within the nation. Scholz had then said:

“A core element of state sovereignty is the issuing of a currency; we will not leave this task to private companies.”

As of now, Germany is focusing on the fact that their financial systems stay within the bounds of the government and not fall in hands of corporates in this rat race for financial superiority.

The United States has also been eyeing the idea of a digital dollar. A number of lawmakers have been advocating this for some time. Just last week, Representatives French Hill (R-Arkansas) and Bill Foster (D-Illinois) have questioned the United States Federal Reserve on this issue and may want to pursue further action in developing a “national digital currency.”