Facebook‘s Libra launch opposed by G7 until regulations in place. According to a report by Reuters on Oct. 12, central bankers and finance ministers from the United States, Canada, Japan, Germany, France, Italy and the United Kingdom (also known as the Group of Seven or G7) suggested that, it will avoid global stablecoin ventures pending sufficient regulatory scrutiny.
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 comment comes from the seven countries’ members, gathered in June 2019 to discuss how cryptocurrencies can be controlled by central banks. The group has addressed questions about how to ensure compliance with anti-money laundering regulations, consumer protection rules and other regulatory problems for digital assets. A G7 study last October reported that “global stablecoins” posed a danger to the global financial system.
As a consequence, the Libra stablecoin from Facebook may not be granted approval from the requisite regulators. Last year, France joined Germany, Italy, Spain and the Netherlands to prevent Libra from launching in Europe. A detailed stablecoin report was released by the G20 Financial Stability Board in April, providing 10 guidelines to control 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.