Top finance officials from the Group of Seven rich democracies are warning that cryptocurrencies such as Facebook’s Libra should not come into use before “serious regulatory and systemic concerns” are addressed. The chairman’s concluding summary from the G7 meeting in Chantilly, France, says the officials agreed that so-called stablecoins — cryptocurrencies pegged to real currencies — will have to meet “the highest standards” of financial regulation to prevent money laundering or threats to the stability of the banking and financial system. The statement says finance ministers, including French host Bruno Le Maire and US Treasury Secretary Steven Mnuchin, agreed that those concerns must be addressed “before such projects can be implemented.” Facebook has proposed creating Libra as a cryptocurrency that is pegged to existing currencies to make it more stable than the likes of Bitcoin, so that it can used as a way to pay for things. Governments around the world are rushing to assess how that would affect the economy. Le Maire said that the G7 officials noted that while stable cryptocurrencies such as Libra could reduce costs for transfers and help provide financial services to underserved communities, they would need to be accountable to governments, not just corporations.
Major economies raise red flags over Facebook’s Libra
Published on: July 19, 2019 11:28 PM