Withdrawal of companies from Libra project is a good sign

BERLIN: Germany’s Finance Minister Olaf Scholz told Reuters on Tuesday that the recent withdrawal of several important companies from Facebook’s Libra project was a good sign, adding that the plan poses a threat to the stability of world finances.

Facebook’s ambitious efforts to establish a global digital currency called Libra suffered severe setbacks in recent weeks as major payment companies including Mastercard and Visa quit the group behind the project.

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“It’s a good sign that important companies have withdrawn from this project,” Scholz said in an interview with Reuters.

“I see the project as a threat to the autonomy of states and to democratic governance in our society. We must ensure that the issuance of a currency remains a matter for states and not large private companies,” Scholz added.