Something more than a simple rebranding of Facebook’s cryptocurrency will be required to ease regulators’ concerns about its launch in Europe. German Finance Minister Olaf Scholz said this, according to Reuters
In remarks after a video conference of G7 finance ministers, at which cryptocurrencies were discussed, Scholz said that relaunching Libra under the new name Diem is merely cosmetic.
“The wolf in sheep’s clothing remains a wolf. It is clear to me that Germany and Europe cannot—and will not—agree to see it enter the market until regulatory risks are properly addressed,” the minister added.
According to him, regulators “must do everything possible to ensure that the currency monopoly remains in the hands of states.”
Earlier, Scholz stated that money issuance cannot be undertaken by private companies, as this function is central to state sovereignty. Later, the German government adopted a strategy to curb the issuance of private digital currencies.
Recall, on December 1, the Libra Association renamed itself to Diem Association. In May Facebook carried out a rebrand of the Libra wallet, renaming Calibra to Novi.
Subscribe to Forklog news on Facebook!