G7 vs Libra From Facebook
The financial leaders of the world’s seven largest economies will announce on Tuesday that the G7 will oppose the launch of Facebook’s Libra stablecoin until it is finalized and properly regulated.
The draft statement was prepared for the meeting of the finance ministers and central bank governors of the United States, Canada, Japan, Germany, France, Italy and the United Kingdom. The project says digital payments can improve people’s access to financial services, increase efficiency, and cut costs.
But such payment services must be properly regulated so as not to undermine financial stability, consumer protection, privacy, taxation, or network security.
Without proper supervision, such stablecoins can be used for money laundering, terrorist financing, proliferation of weapons of mass destruction and other illegal activities. All of this can damage the integrity of the market and undermine the legal system of states.