The Libra stable coin by Facebook which is designed for the facilitation of international finance and do so without the strenuous interference of government has been coming under pressure increasingly.
On Friday, the Finance Minister of Germany, Olaf Scholz added to the pressure after he said that Libra must be prevented.
The statements had been made before the World Bank and IMF i.e. International Monetary Fund meeting. The official in Germany had told the reporters that he had been skeptical of the coin as well as other stable coins.
The statements by Scholz have also pointed at the difficulties being faced by Libra due to the global issues of sovereignty.
He also said that they will be monitoring the situation carefully with all the means that were at their disposal and that he was not in the favor of the successful creation of this kind of a world currency because that responsibility stands with the democratic states.
While he decried the cryptocurrency of Facebook, Scholz did acknowledge though that change must be there. He mentioned multiple times that the situation financially is in the need of change and reform.
Although as per the finance minister this change must not take the form of a cryptocurrency. He additionally was clear that the need for control and interaction by government was very important.
He further told the reporters that although the changes must come, stable coins such as Libra are a threat to the financial system globally. Such unilateral and unregulated attempts to circumvent the international standards must be controlled definitely.
The minister did not address the other cryptocurrencies like Bitcoin. While the concerns for centralized coins like Libra are there, the need for an international system of payments which can settle transactions quickly is evident.