The central bankers and finance ministers from the United States, Canada, Japan, Germany, France, Italy, and the UK, also known as the Group of Seven (G7) said that it would halt global stablecoin projects pending appropriate regulatory oversight, as no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements.
It has been reported that 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.
However, 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 report said that 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 (AML) laws, consumer protection rules, and other regulatory matters.
Last October, a G7 report stated that “global stablecoins” posed a threat to the global financial system.
Likewise, Facebook’s Libra stablecoin may not get approval from the necessary regulators.
The G7 draft also included the group’s concern over ransomware attacks, which states “jeopardize essential functions along with our collective security and prosperity.”
Thus, 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.