The Big Seven Called Libra Cryptocurrency …
G7 calls Libra a risk to financial stability
Digital currencies like Facebook’s Libra must meet “the highest regulatory standards” to combat money laundering and protect users, the G7 group said Thursday..
Reuters got a draft of the resulting document from the meeting of the finance ministers of the group’s countries in France, where they agreed to resolve issues related to the regulation of the digital economy.
The main topic of the meeting was the Facebook cryptocurrency. Those present expressed concern that large tech companies are beginning to enter the space that was originally controlled by the authorities, for example, to issue currencies.
“Everyone understands that new technologies can bring benefits. But people want a safe and cheap solution, not just a cheap one. Therefore, we must think about safety too. We got the feeling that we should work together on this issue, “- said the Minister of Finance of Canada Bill Morneau in a conversation with Reuters..
Fears are also related to the fact that Facebook’s ambition in the field of digital currencies could weaken the government’s control over monetary and banking policies, resulting in security risks..
“A global stablecoin for retail use can enable faster and cheaper settlement, increase competition in the payments industry and thus lower costs, and support the spread of financial services,” ECB Governing Council Member Benoit Curet said during the meeting. “However, this poses a number of risks associated with government policy priorities, including combating money laundering and terrorist financing, consumer and data protection, countering cyber threats, fair competition and tax compliance.”.
The head of the Banque de France Francois Villeroy de Gallo said that financial regulators will not sacrifice consumer safety for the sake of innovation: “Financial regulators are supportive of innovation, but not at the expense of consumer safety.”.
Earlier, the US Congress held a hearing on Libra, the participants of which expressed similar opinions.
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