Facebook's renamed cryptocurrency is still 'wolf in sheep's clothing': German Finance Minister

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It will take more than renaming Facebook's cryptocurrency to address the concerns regulators have about authorising its launch in Germany and Europe, German Finance Minister Olaf Scholz said on Monday.

FILE PHOTO: German Finance Minister Olaf Scholz holds a virtual news conference in Berlin, Germany, November 27, 2020. Kay Nietfeld/Pool via REUTERS/File Photo

BERLIN - It will take more than renaming Facebook’s cryptocurrency to address the concerns regulators have about authorising its launch in Germany and Europe, German Finance Minister Olaf Scholz said on Monday. In a statement after a video conference of G7 finance ministers at which cryptocurrencies were discussed, Scholz said that relaunching Libra under its new name of Diem was only 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 its entry into the market while the regulatory risks are not adequately addressed.” He added: “We must do everything possible to make sure the currency monopoly remains in the hands of states.”

 

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