The German Minister of Finance speaks in favor of creating a virtual currency for that continent.
With the announcement of the official launch of Libra by Facebook, many people, institutions and governments have rejected its use, creating a clear negative towards this digital active.
For this reason, the idea has emerged, in some countries of the world, to regulate these assets and complement the regulation with the launch of a virtual currency that is supported by local government departments and belongs to the country as one more official currency.
Recently the German Minister of Finance supported the idea of developing a cryptocurrency for the countries that make up the European Union (EU).
Governments Against Cryptoactive
For some governments of the world, the idea of a decentralized virtual currency represents a strong opposition to the control of assets in the nation. In this way, they would be against a currency that does not contribute taxes and stands out from monetary controls.
Despite these characteristics, most governments had not taken strong measures against these assets until the announcement of Libra activated the alarms, due to what Facebook represents for the global economy.
The lack of trust that Facebook generated after the scandal about the mishandling of sensitive user information has meant a disadvantage for many government representatives and their economies. This is because governments assume that they could lose control over key sectors of the economy due to the entry of a virtual currency managed by the social network and a group of private companies which support the project.
But, after the announcement related to Libra, governments had to determine two positions in this regard. The first one is based on the total prohibition of cryptocurrencies in their countries, as well as the illegality of the development of Libra in their territory. This is something that supposes a clear change to the laws to avoid the cryptocurrencies to alter their economic conditions.
The second position is to execute efforts with the aim to know the technology, modify the laws to regulate the use of these assets, and promote the development of virtual assets of their own, in order to compete, in a new market, which was unknown to the State.
A Possibility
In this way, cryptocurrency development ideas have emerged in countries like China, for example. Likewise, these issues have entered into discussion in the European Union and within the legal agencies of the United States.
Among the significant advances, it is detailed that some meetings to discuss the issue of cryptocurrencies in the European Union have led to the majority of representatives reaching a consensus.
Although governments mostly disagree with the idea of allowing Libra access in their countries, however, it was determined, among some members, to support the idea of creating a virtual currency for Europe. This asset would be controlled by governments of these countries and can be used for the crypto-market, assuming its inclusion in fiscal parameters throughout Europe.
In this way, the German Finance Minister Olaf Scholz commented, during an interview, that this kind of “payment system would be good for the (European) financial center and its integration into the financial market world. We must not leave the field for China, Russia, the United States, or any other private provider”, he said.
This action could allow these governments to join a new market unknown for them and which is generating millions of dollars in transactions around the world and every year.
By María Rodríguez
