According to a statement issued on October 28, the German federal parliament believes that cryptocurrencies such as Bitcoin (BTC) are not real money.
In that statement, the parliament says that the assets currently offered by cryptocurrencies only provide a limited portion of the characteristics of traditional money. The statement, which is entitled “Cryptocurrencies are not real money,” is based on a response from the German federal government to a question from the Free Democratic Party parliamentary group.
In the announcement, it’s also noted that the volume of payments made with cryptocurrencies is very limited compared to fiat currencies. Also, the author states that the constant fluctuations in the value of cryptocurrencies make them unfit to be a reserve of value.
Besides, it should be noted that the German government intends to prohibit the adoption of cryptocurrencies: “It will be ensured that stable currencies are not established as an alternative to state currencies and, therefore, question the existing monetary system.”
In another order of ideas, the government said they still have to determine whether Libra, Facebook’s cryptocurrency, would comply with German law. According to the statement, the technical document of the project is not an adequate source of information to judge the matter; therefore, more information is required for proper evaluation.