G7 to
Oppose Libra Launch Until Properly Regulated
Financial leaders of the
world’s seven biggest economies are set to reveal they will oppose the launch
of Facebook’s Libra cryptocurrency project until it’s properly regulated,
according to a draft G7 statement.
The draft was reportedly
prepared for a meeting of finance ministers and central bankers from several
countries, including the United States, Japan, Canada, Germany, and
Britain. It added digital payments could improve access to financial
services and cut inefficiencies and costs.
The statement added that such
payments services have to be appropriately supervised and regulated so they
do not undermine financial stability, consumer protection, privacy, taxation
or cybersecurity. The draft reportedly reads:
“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.”
If such a stablecoin project
isn’t properly supervised, the G7 added, it could be used to launder money,
finance terrorism, or compromise market integrity and governance.
