The German Federal Government does not see any real money in crypto currencies à la Bitcoin (BTC), as a statement to that effect made on 28 October shows.
No means of payment, no store of value
According to the communication, “crypto currencies perform the economic functions of classic money only to a very limited extent at best”. Accordingly, “crypto tokens are not “real” money, as the title of the communication already says, which in turn is an answer to a request by the FDP parliamentary group in the Bundestag.
To underline this, the answer lists the basic functions of currencies that can be defined as a means of exchange and payment, a store of value and a unit of account. To this end, the payment volume processed so far with crypto currencies is still small in comparison to usual currencies, which would make the means of payment function inaccurate.
Stablecoins must not establish themselves as an alternative
Furthermore, the exchange rate fluctuations of crypto currencies would ensure that they are also unsuitable as store of value. Stablecoins would strive for the (value) stability that gives them their name by being tied to an external asset, such as national currencies, but the German government is nevertheless sceptical about this form, it is said:
“It is important to ensure that stablecoins do not establish themselves as an alternative to state currencies and thus call the existing monetary order into question.”
In this context, the communication concludes that the Federal Government is currently still examining whether the stable coin Facebook Libra is compatible with German and European law. The White Paper of the Facebook Crypto Project is not a suitable source for answering this question as to why the social media group first has to disclose further information.