G7 will oppose Libra launch until regulations in place

“No global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements.”

Countries representing the world’s largest economies said in a draft of a statement that they would initially oppose the launch of Facebook’s Libra project.

According to an Oct. 12 report from Reuters, central bankers and finance ministers from the United States, Canada, Japan, Germany, France, Italy, and the U.K (also known as the Group of Seven, or G7), said it would halt global stablecoin projects pending appropriate regulatory oversight.

The draft stated:

“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.”
The statement comes from representatives of the seven countries, assembled in June 2019 to examine how central banks can regulate cryptocurrencies. The group has raised concerns over how to ensure digital assets comply with anti-money laundering laws, consumer protection rules and other regulatory matters. A G7 report last October stated that “global stablecoins” posed a threat to the global financial system.

As a result, Facebook’s Libra stablecoin may not get approval from the necessary regulators. Cointelegraph reported last year that France had teamed up with Germany, Italy, Spain and the Netherlands to prevent Libra from launching in Europe. In April, the G20’s Financial Stability Board issued a comprehensive stablecoin study, presenting 10 recommendations to regulate them effectively.

The G7 draft also included the group’s concern over ransomware attacks, which it states “jeopardize essential functions along with our collective security and prosperity.” Such attacks have been on the rise in countries including the United States, France, Germany, Greece, and Italy since the start of the pandemic earlier this year.

 

written by Turner Wright

https://cointelegraph.com/news/g7-will-block-libra-launch-until-regulations-in-place

Related articles

The Pros And Cons Of Cryptocurrency

  The Pros And Cons Of Cryptocurrency Many facets of our lives are now digitized––money is no exception.  Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card?  Not to mention, cash carries germs, as we’ve heard […]

Learn More

Report: Major Dutch Bank ING Building Crypto Custody Tech

Report: Major Dutch Bank ING Building Crypto Custody Tech      Powerhouse Dutch bank and financial services firm ING is one of the largest banks in the world. Where it goes, peers and smaller companies are likely to follow. That’s why major intrigue came along with a new report from Reuters last week, wherein the outlet […]

Learn More

Crypto ‘Is Now Finally Being Taken Seriously’ By Taxman

Crypto 'Is Now Finally Being Taken Seriously' By Taxman The major consulting company, PwC said that the increased interest in cryptoassets from tax authorities and other regulators shows that this asset class is now finally being taken seriously. (Updated at 14:59 UTC: the new last paragraph has been added). "What our research shows is that […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *