Facebook’s renamed cryptocurrency is still “wolf in sheep’s clothing,” says the Federal Minister of Finance
Facebook’s Diem Dollar, which recently changed its name from Libra, still fails to impress German regulators.
According to the Reuters, in a statement following the video conference of the G7 finance ministers at which cryptocurrencies were discussed, Scholz said that the relaunch of Libra under the new name Diem was just a cosmetic change.
“A wolf in sheep’s clothing is still a wolf,” he said. It is clear to me that Germany and Europe cannot and will not accept market entry as long as the regulatory risks are not satisfactorily resolved.
“We have to do everything we can to ensure that the currency monopoly remains in the hands of the government.” He added.
Prior to the name change, Libra had scaled back the ambition of its plans to appease regulators. While they still plan to eventually create a new currency tied to a basket of assets, it will be a fully licensed stablecoin that allows for easier regulation. Diem’s first release, slated to hit the market in January 2021, will be a simple dollar-based stablecoin such as USDT, USDC, BUSD, DAI …
The G7 heads of state and government have previously made it clear that they will reject the project until it fully meets legal, regulatory and supervisory requirements. The explanations do not state which claims still need to be resolved.
It seems Diem is still not abandoning his plans to create a domestic currency, even if it is backed by G-7 fiat currencies, the project will continue to create regulatory headwinds.
According to AZCoin News