Facebook Libra launch Opposed by the G7
The G7 has announced that it will initially be opposing the launch of Facebook Libra project. The G7 represents countries with the world’s largest economies. They announced this in a draft of a statement.
According to various reports, central bankers and finance ministers from the G7 said it would halt global stablecoin projects. This is till all pending appropriate regulatory oversight. The G7 countries are the United States, Canada, Japan, Germany, France, Italy, and the U.K.
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.”
This statement particularly affects the Facebook Libra project set to launch in the nearest future. The G7 has raised concerns over how to ensure digital assets comply with several laws. Like the anti-money laundering laws, consumer protection rules and other regulatory matters. A G7 report last October stated that “global stablecoins” posed a threat to the global financial system.
As a result, Facebook’s Libra stablecoin may not get approval from the necessary regulators. Just last year there were reports that France had teamed up with other EU countries to prevent Libra from launching in Europe. In April, the G20’s Financial Stability Board issued a comprehensive stablecoin study. The study presents 10 recommendations to regulate them effectively.
The G7 draft also included the group’s concern over ransomware attacks. It states that ransomware attacks “jeopardize essential functions along with our collective security and prosperity.” Since the start of the pandemic, such attacks have been on the rise in countries including US, France, and Italy.