“Crypto tokens are not real money” was announced by the German Bundestag on 28 October. Bitcoin and other “crypto tokens on the market” fulfilled the classic functions of money only to a limited extent. The functions of money include:
- Means of exchange and payment
- store of value
- arithmetic unit
With its current announcement, the Federal Government refers to a report from September in which it had responded to a small question from the FDP. It said that the payment volume processed with the current crypto tokens was very small compared to government currencies.
In addition, crypto tokens are not yet suitable as a store of value due to their strong fluctuations in value. The German government regards stable coins such as Libra as questionable. This was the answer given in September:
“From the Federal Government’s point of view, it will be necessary to ensure that stable coins do not establish themselves as an alternative to state currencies and thus call into question the existing monetary order.”
Overall, the Federal Government’s announcement refers more to the “Facebook Coin” Libra than to Bitcoin and other currencies. However, so far there has been a lack of sufficient information to get to the bottom of the matter. According to the Bundestag, the White Paper on Libra is not sufficient.
In the past week representatives of the crypto currency project of the house Zuckerberg had stepped before the Bundestag and had placed themselves to the questions of the finance committee. The finance committee asked many questions, to which the Libra delegates knew little answers. One day before Facebook boss Mark Zuckerberg had faced the US Senate. The situation was much sharper than before the German Bundestag. Congressmen did not leave good hair on Libra at the hearing.
Here it is to be noted probably that the crypto currency project Libra is to be equated by no means with Bitcoin and other crypto currencies. While Bitcoin maps a decentralized currency system on blockchain basis, Libra rather represents a counter-project. As a currency covered by stable coins from a private company, this is a centralised digital currency.