German Goverment: Facebook’s Crypto is "A Wolf In Sheep’s Clothing"

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The G7 is clearly worried about a possible launch in 2021 of Facebook’s own cryptocoin, whether it is called Libra or Diem (as it has recently been rebranded). Proof of this fact was given when the German Finance Manager Olaf Scholz released a statement addressing the Facebook namechange. Scholz said:

A wolf in sheep’s clothing is still a wolf.

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.

Currency monopoly

Mr Scholz, who had just ended a videoconference with his G7 colleagues, made it also very clear what it in fact was all about when adding:

We must do everything possible to make sure the currency monopoly remains in the hands of states.

Rebranded Libra Still a ‘Wolf in Sheep’s Clothing’: German Finance Minister: German Finance Minister Olaf Scholz took aim at the rebranded lDiem and said it would… https://t.co/NgkDJDKknA | https://t.co/FHLhKCQA7o | https://t.co/vqHPEDx05k #cryptocurrency #blockchain #Bitcoin

— Blockchain and Cryptocurrency News Aggregator (@eBargainsToday) December 8, 2020

This is one of the first times that a high-ranking government official has admitted what it is in fact all about. If a stablecoin like Libra (or Diem) were able to reach 2 billion customers (which is the number of users Facebook has) then central banks would lose their ability to control the money flow.

“A wolf in sheep’s clothing is still a wolf.“ German Finance Minister Olaf Scholz underscores his concerns about authorizing the launch of Facebook’s Libra cryptocurrency - newly renamed Diem - in Germany and Europe https://t.co/qOkkCJ2940 by @andrea_shalal #Germany #G7 #Facebook

— Michael Nienaber (@mcnienaber) December 7, 2020

At this moment, whenever a government needs extra cash (in case of the current pandemic, that has happened multiple times in 2020 for both the US and Europe) the phone of the central bank rings and the money printers get turned on, which causes the fiat currency to get diluted and prices to rise. This is because the value of those goods remains the same whilst the money that needs to be paid for it becomes more as that currency gets diluted.