The G7 group of nations has reportedly drafted a report that says “global stablecoins” pose a threat to the global financial system.
On Oct. 13. BBC reported the G7 report about the various risks associated with it while stating that member firms of Libra Association even if addressed regulatory concerns may not get approval from the regulators while addressing:
“The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed. […] Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement.”
Global stablecoins can potentially scale rapidly while raising competition and threatening financial stability.
The G7 report will be presented to the finance ministers at an annual meeting of the International Monetary Fund this week.
Regulations of Stablecoins
The Bank of England (BoE) has finalized a set of principles that the Facebook-led Libra cryptocurrency project must adopt before going live in the UK.
Haruhiko Kuroda, Governor of Bank of Japan requested policymakers for tighter regulations for Libra in a speech before business leaders in Osaka city of Japan.
Executives from some of the biggest American banks told the Federal Reserve that Facebook’s cryptocurrency Libra would pose a threat to monetary policies in the US.
Source: Cointelegraph | Image: Adobe Stock