Seven countries are against Facebook launching Libra before proper regulation comes along
Seven countries are against Facebook launching Libra before proper regulation comes along

A draft statement from the financial leaders of the world's seven largest economies (G7) shows that they will say Tuesday: They are against Facebook's introduction of a stable currency (Libra) in order to properly regulate it.

The draft was prepared for a meeting of Treasury ministers and central bank governors of the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom: digital payments can improve access to financial services and reduce efficiency and costs.

Draft Reuters Statement: These payment services must be properly regulated so as not to harm financial stability, consumer protection, privacy, taxes, or network security.

The draft states that "without proper oversight, this stable currency can be used for money laundering, financing terrorism, and nuclear weapons proliferation, undermining market integrity and governance, and undermining the security of the law."

The draft also states: “The Group of Seven (G7) continues to emphasize that the global stable currency project should only be launched after this problem is properly addressed. Relevant laws must be formulated within a framework of appropriate design and compliance with applicable standards.” Regulations and regulatory requirements .

The G20 Financial Stability Board made 10 recommendations last April, indicating that Facebook, the owner of the Libra coin, is offering and paying for a unified way to manage a stable international currency.

In September last year, two European Union documents announced that the European Union would introduce new regulations within four years to make cross-border payments faster and cheaper through the use of technological resources (blockchain). And crypto assets (for example: stablecoins).

If 78% of eurozone liquidity is cash, the European Commission will formulate its strategy to encourage greater use of digital finance. He is also generally hoping to move quickly to "immediate" payments, as the end of the pandemic shows the growing role of cashless payments.

A stablecoin - a cryptocurrency usually backed by traditional assets - entered the agenda of policymakers when Facebook announced its Libra exchange rate plan last year. The central bank is currently studying the possibility of issuing its own currency.

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