Some of you might have heard that Germany released its Blockchain strategy called Germany on Chain.
Phillip Sandner, from the Frankfurt School of Finance & Management, was one of the first to write a good review (unfortunatelyin German). You can read it here on Medium.
4 key take-aways:
- Tokenization of assets --> YES
- Central bank coins like € --> YES
- Crypto assets like BTC or ETH --> YES
- Stable coins like Libra --> NO way
Please keep in mind that this is a quick summary and all yeses are within the legal boundaries the German Government let's Blockchain develop/work within.
Why are Stable Coins not ok and Bitcoin is?
This is pretty simple to explain once you understand that a central currency is one of the most powerful tools for a government.
We all know that BTC and others are no alternative for the fiat currencies like the Dollar or Euro. Volatily is the main reason it isn't fit and the main reason people buy Bitcoin.
Stable coins are technically not a replacement as they are backed by gold or other currencies. But there is a lot of risks as we've seen with Tether, you never know if they are really backed by it?
But the main problem is that the backed currencies lose power once everyone is on a stable coin around the world. Best example is the gold backed Dollar...
...once there was more Dollar than Gold:
- People were basically scammed on the biggest level ever by another government
- The Dollar became the world currency and not Gold, because once the system is ...... it is better to have a global libra than nothing.
Governments will try everything to stop a Libra or other stable coin get so far!
This is a good step forward, but not enought
There isn't even government funding for blockchain projects compared to AI in Germany.