Nevertheless, the German government sees the need for regulatory measures to control digital currencies.
On June 12, 2018, representatives of the German Federal Government stated that cryptocurrencies do not pose a threat to financial stability, according to Cointelegraph auf Deutsch reports.
According to the Federal Government, volume of crypto asset transactions is too low compared to the size of the global financial system to pose a serious threat to the current financial system. However, the German government considers it appropriate to closely monitor developments in this area at the G20 level. According to the Federal Government, this assessment is shared within fellow G20 countries.
The German government also explained its position considering problems associated with cryptocurrencies. The alleged problems include money laundering, illegal revenue, use of such currencies in online gambling and terrorist financing. At the moment, a national risk analysis to be completed next year is in the works, which would identify any need for action on the government’s part.
The Federal Government also noted that permission from the Federal Financial Supervisory Authority is necessary for the commercial trade of cryptocurrency. The government also emphasized the importance of international controls in the crypto sphere.
In April 2018, the International Monetary Fund (IMF) stated in the official report that the body does not see cryptocurrency as a threat to global financial stability, citing similar reasoning to those of the German government.
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