The announcement claims a "privacy-preserving [...] payment system". Are you saying this would come in conflict with German law?

Taler is privacy-preserving for the payer, but not for the payee. This solves many legal issues such as tax evasion and money laundering.

I think it is the European sense of privacy where the government is implicitly inside everyone's trust circle.

I think Taler is designed to be privacy-preserving while being able to comply with national laws. So not the currency you're looking for if you wanna buy something illegal.