Germany adopted the national blockchain strategy and made clear that Facebook's Libra is not welcome in the national market.

On 18 September, the German Federal Government adopted the national blockchain strategy, which, as Berlin hopes, will help spread the technology and reduce the risks associated with its implementation. The strategy is aimed at unlocking the potential of blockchain and distributed registry technology (DLT) in Germany, and will also support the digital transformation of several economic sectors, while avoiding the risks associated with the use of blockchain and possible abuse of user data.

The strategy adopted by the German authorities states that "only with a perfect digital single market, Germany will remain globally competitive"

"We want to be at the forefront and further strengthen Germany as a leading technology location," German finance minister Olaf Scholz said.

The strategy also aims to protect consumers and state sovereignty. These two problems have been repeatedly voiced by representatives of the German authorities in connection with the growing popularity of new virtual currencies in European markets.

"A core element of state sovereignty is the issuing of a currency, we will not leave it to private companies," said Scholz.

Although the minister did not mention the name of private companies seen as competitors by the German authorities, it is clear that the minister addressed his statement to Facebook's cryptocurrency project Libra, which is scheduled to be launched in 2020.

“We cannot accept a parallel currency,” Scholz said, addressing the legislators of the federal government. “You have to reject that clearly.”

The German strategy says that Germany will work closely with its European and international partners to prevent stablecoins from becoming currencies alternative to national money.

“The Federal Government will work at European and international level to ensure that stablecoins will not become an alternative to official currencies,” the German strategy reads.

Last week France and Germany said that Libra carries risks to the financial sector. Such a negative statements may complicate the entry of Libra into the European market.

Later this year, the German government will also try to propose legislation which will allow blockchain-based electronic bonds.