The German Federal Parliament (Bundestag) said that bitcoin and other cryptocurrencies will not be able to become money and a means of capital accumulation.
The members of Bundestag came to the conclusion that digital assets present on the market of cryptocurrencies, have only a partial set of characteristics inherent in traditional money. Among them were the possibility of exchange, making purchases everywhere, as well as the real value.
According to the Bundestag deputies, taking into account all these properties of Fiat currencies, cryptocurrencies lose out to them, since most of the payments are made in conventional currencies. In addition, constant fluctuations in the exchange rates of cryptocurrencies are the main obstacle to the mass introduction of crypto assets. Even stablecoins linked to state currencies and backed by physical assets cannot be considered a full-fledged means for making payments.
“Stablecoins are not an alternative to national currencies, otherwise the world monetary system will be put at risk,” the deputies of the German Parliament believe.
The German government recently said it has no clear answer as to whether Facebook’s Libra cryptocurrency complies with German law. According to the German authorities, the technical documentation of Libra does not provide comprehensive information about the project, so they opposed the launch of this cryptocurrency.
In September, Germany decided to oppose the issuance of corporate currencies on the blockchain. However, this month, German Finance Minister Olaf Scholz proposed creating a digital Euro to keep up with the US and China in developing the latest technologies.