{"id":128053,"date":"2020-12-07T20:00:08","date_gmt":"2020-12-07T17:00:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/german-government-unimpressed-by-facebook-stablecoins-rebrand\/"},"modified":"2020-12-07T20:00:08","modified_gmt":"2020-12-07T17:00:08","slug":"german-government-unimpressed-by-facebook-stablecoins-rebrand","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/german-government-unimpressed-by-facebook-stablecoins-rebrand\/","title":{"rendered":"# German government unimpressed by Facebook stablecoin’s rebrand"},"content":{"rendered":"

“# German government unimpressed by Facebook<\/a> stablecoin’s rebrand <\/strong>”
\n<\/p>\n

Facebook\u2019s Diem stablecoin, which recently changed its name from Libra, is still failing to impress German regulators.<\/p>\n

As\u00a0reported<\/a>\u00a0by Reuters,\u00a0 German Finance Minister Olaf Scholz voiced his criticism of the project on Monday after a conference between G-7 finance ministers and central bank directors. <\/p>\n

Scholz called Facebook\u2019s project \u201ca wolf in sheep\u2019s clothing,\u201d highlighting that changing its name would not change its fundamentals. According to him, Facebook and the Diem Association have failed to adequately address its regulatory risks. Until that is done, the German government \u201cwill not accept its entry into the market.\u201d<\/p>\n

Before renaming itself, Libra had already scaled down the ambition of its plans in a bid to app<\/a>ease regulators. Though it still plans to create a new currency pegged to a basket of assets eventually, it would be a fully permissioned stablecoin that should enable easier regulation. Diem’s first release, rumored to be coming in January 2021, will reportedly be a simple U.S. dollar-based stablecoin. <\/p>\n

G-7 leaders made it clear earlier that they would oppose the project until it fully satisfied legal, regulatory and oversight requirements. The statements did not specify which requirements are left to be addressed.<\/p>\n

Scholz\u2019s remarks seem to suggest that the issue is one of principle. \u201cWe must do everything possible to make sure the currency monopoly remains in the hands of states,\u201d he said at the conference. <\/p>\n

It seems that Diem\u2019s refusal to drop its plans of creating a separate currency \u2014 even if backed by the G-7\u2019s fiat currencies \u2014 will continue to create regulatory headwinds for the project.<\/p>\n