FAST FIVE: G7 Panics, Says "Global Stablecoins" Pose Threat To Financial Stability
G7 Panics, Says “Global Stablecoins” Pose Threat To Financial Stability Authored by Aaron Wood via CoinTelegraph.com, The G7 group of nations has reportedly drafted a report which says that “global stablecoins” pose a threat to the global financial system.
It also said that, even if member firms of the governing Libra Association addressed regulatory concerns, it may not get approval from the necessary regulators, stating: “The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed.
These include challenges for financial stability; consumer and investor protection; data privacy and protection; financial integrity including AML/CFT and know-your-customer compliance; mitigation of tax evasion; fair competition and anti-trust policy; market integrity; sound and efficient governance; cyber security and operational risks; and an appropriate legal basis.” The report will purportedly be presented to finance ministers at an annual meeting of the International Monetary Fund this week. Further problems for Libra.
Facebook CEO Mark Zuckerberg will testify before the United States House of Representatives Financial Services Committee about Libra later this month.
Earlier this year, the committee drafted the “Keep Big Tech out of Finance Act.” Libra has seen several major partner firms of its governing consortium leave the project recently.