Olaf Scholz, German Finance Minister Not Sure CryptoCurrency Can Replace Conventional Currencies

Olaf Scholz, German Finance Minister Not Sure CryptoCurrency Can Replace Conventional Currencies

September 19, 2018 Off By Steven Anderson

Olaf Scholz, Finance Minister of Germany, is uncertain that digital currencies can currently swap or change common fiat currency; this is according to the report published today.

Olaf has doubt, whether crypto has a perception as a model of currency.  As a matter of fact, he matches up digital coins to the tulip fever bubble in the Netherlands in the seventeenth century. He said that the risk is high that there’ll be such tulip inflation.

According to this German Finance Minister, the necessary computer procedures for the mass completion and execution of digital currencies are incredibly costly. He also added that it is time-consuming and very energy intensive, which might not work. On the other hand, Olaf didn’t want to give information or prediction about the status of digital currency in the coming 20 to 30 years.

Scholz also commented during his interview that digital currencies must also be observed strictly and personally by regulators or supervising bodies. He believes that this digital coin can be used for money laundering, terrorist funding, as well as other unlawful activities. Scholz also added that they don’t think that digital currency has economically considerable importance at this point in time.

Legislators in Europe have met many capacities in the previous weeks to talk about their concerns and issues over digital currencies as well as the possible cures to the problems related to the digital coin. On the 4th of September, European Parliament members gathered to talk about regulation for ICO or Initial Coin Offerings that while being an extremely promising and interesting medium instrument for raising capital need more regulatory mistake in the perception of many legislators in Europe.

Economic and Financial Affairs Council meeting recently held in Vienna, Austria Valdis Dombrovskis Vice President of European Commission claimed that digital currencies require further rule and guideline.

While noting which digital currency is “here to stay,” he emphasizes that the EU or European Union will give more time and effort on the growth and expansion of digital currency asset classification as well as the regulatory mapping.

Before the gathering as mentioned earlier in Vienna, a statement by Belgian think tank Bruegel advised supervisory bodies to adopt the same and consistent rules and regulations on digital currencies at the European Union level. According to the report, while rules are left to public entities, there’s a chance for “the arbitrage of the regulatory” for cryptocurrency businesses.

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