• Fri, 15 Nov 2019, 03:18 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Facebook's Libra, other cryptocurrencies pose risk of global economic destabilization: G7

Image Credit: G7 France Twitter

Fri, 19 Jul 2019, 05:04 am UTC

Cryptocurrencies such as Facebook’s Libra need to be held “to the highest regulatory standards,” as they posed a threat to global financial stability, according to a Group of Seven (G7) taskforce as reported by Reuters.

According to the initial report of the taskforce, chaired by European Central Bank board member Benoit Coeure, these financial innovations are at risk of being utilized for money laundering and terrorism funding, as well as consumer and data protection, cyber resilience, fair competition, and tax compliance.

A piece from the Financial Times further quotes Coeure, saying that cryptocurrencies “could also pose issues related to monetary policy transmission, financial stability and the smooth functioning of and public trust in the global payment system.

However, while the report acknowledged that stablecoins can provide faster and cheaper remittances and spur payment competition, it stressed that they need to be strictly regulated to ensure they are stable, secure, and free of criminal activity.

As large technology or financial firms could leverage vast existing customer bases to rapidly achieve a global footprint, it is imperative that authorities be vigilant in assessing risks and implications for the global financial system,” he said.

The report also underscored that stablecoin developers are required to exert more “significant work” and negotiations before they can earn the approval of authorities.

Meanwhile, the task force presented its preliminary report during the G7 meeting in Chantilly, France, where Facebook’s Libra reportedly received sharp criticism from G7 chiefs, regulators, central bankers, and governments.

The G7 leaders reportedly insisted that tough regulatory issues need to be worked out first and that Facebook’s digital coin must comply with anti-money laundering rules and guarantee the security of transactions and user data.

I am convinced that we must act quickly and that (Libra) cannot go ahead without all legal and regulatory questions being resolved,” German Finance Minister Olaf Scholz said.

Bank of Japan Governor Haruhiko Kuroda believes that a global consensus is necessary, since Libra is poised to have an impact on the global economy.

If the Libra is aspiring to be used globally, countries must seek a globally coordinated response,” he said, adding that discussions should not be limited to G7 central banks only.

Meanwhile, G7 ministers are also planning to address tax issues raised by the digital economy, with France reportedly flexing its presidency position to get support for ensuring minimum corporate taxation.

Earlier, United States Treasury Secretary Steven Mnuchin also echoed President Donald Trump’s sentiments on cryptocurrency, saying he has “very serious concerns,” including Libra and its potential illegal use.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,619.14 (-1.93%)
  • Ethereum (ETH) $183.60 (-2.20%)
  • XRP (XRP) $0.266900 (-2.21%)
  • Bitcoin Cash (BCH) $273.45 (-4.16%)
  • Litecoin (LTC) $59.17 (-2.98%)
  • Bitcoin (BTC) $8,619.14 (-1.93%)
Nov 14, 2019 (Thursday)
12:14
Amun AG launches Tezos ETP on Swiss SIX Exchange; makes available 7 crypto ETPs on Boerse Stuttgart
11:38
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:37
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
10:59
Samsung SDS integrates QEDIT’s private asset transfer solution with Nexledger blockchain
10:46
Crypto Technicals: BTG/USD slips lower to test 4H 200 SMA, break below to see more downside
10:11
ASX-listed firm DigitalX launched new bitcoin fund
09:23
Telegram denies all SEC allegations concerning its gram token and sale
08:23
Crypto Technicals: XMR/USD pauses shy of 110-EMA (67.251), break above to fuel more gains
07:17
AFME calls for a common approach for regulation of crypto-assets in Europe
06:49
Crypto Technicals: XRP/USD edges higher from fresh 3-week lows at 0.2565, bias strongly bearish
06:21
Chinese bitcoin mining giant Canaan seeks to raise $100M in US IPO
05:20
Crypto Technicals: LTC/USD breaks below 21-EMA, eyes 50-DMA at 57.28
05:19
Crypto data provider Messari raises $4M from Uncork Capital, Coinbase Ventures and others
04:35
Crypto wallet startup Bitski secures $1.8M from Winklevoss Capital, Coinbase and others
04:06
Crypto Technicals: BTC/USD confined to narrow range trade, 5-DMA caps upside at 8814
Nov 13, 2019 (Wednesday)
13:19
CME sets January 13 as target date for bitcoin options launch
12:25
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:25
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
12:17
HSBC, SGX, Temasek explore DLT for end-to-end digitalization of fixed income securities
11:18
Crypto Technicals: LTC/USD trade rangebound, holds support at 21-EMA (60.12)
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft