G7: Cryptocurrency Stablecoin like ‘Libra’ are Threat for Global Financial Stability

Must Read

Stellar Lumens (XLM) Price Analysis: Bears Enforced XLM Price To Reach Support Level Of $0.060

Stellar Price is suffering major price corrections due to the overall downtrend in the cryptomarket.  Currently, it is facing...

Ethereum (ETH) Price Analysis: ETH Again Fails In Sustainability at $200

The bears are showing no mercy for ether price as it is reaching the crucial level of $198 ...

Ethereum Classic Claims to be the Only Secured PoW Smart Contracts Platform

Ethereum Classic (ETC) is a decentralized blockchain platform. It is a hard fork of Ethereum that lets anyone...
5d53ab6f4b523-bpfull
Arushi Dubey
Arushi Dubey is a student of Bachelor in Arts( Psychology). She is pursuing Psychology in arts with English literature and French Language. She is well versed in the English language. She is good at expressing her thoughts into words. She is still getting more and more trained in gathering knowledge related to Crypto Currencies and expressing them.

G7 nations Group has recently published a report drafted by the G7 taskforce stating that the global cryptocurrency stablecoins are a possible threat to the global financial system. The drafted report came out yesterday and it is drafted by officials with the senior ranking from the International Monetary Fund (IMF), Central Banks, and Financial Stability Board (FSB). The report focuses on the different threats related to virtual currencies. The statement came from the Financial Stability Board’s chair Randal Quarles that they are drafting a report.

A letter about the same was also circulated among the finance ministers of G20 and Governors of Central Banks. The report pointed out Facebook’s stablecoin Libra as a possible major risk for the global financial systems and also pointed out the threats from other stablecoins. It is also made clear in the report that even if the Libra Association and its governing members report to regulatory concerns, still it is not possible that they will get approval from the key regulators. Even some of the important members of the Libra Associations has left the project, firms like PayPal, Mastercard, Visa, and Stripe.

The statement in the report,

“The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed. […] Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement.”

On the other hand, previously the leaders of G7 accepted the fact the cryptocurrency doesn’t threated the global financial stability, however, the letter states that the multinational stablecoin could be threatening to the regulatory system. The important concerns related to stablecoin listed in the report are the amenability of AML/CFT and KYC, security, and privacy of the customer’s data, dodging of tax, the integrity of the market and equal competition. However, the letter doesn’t mention any specific stablecoin, but the letter discusses concerns related to Facebook’s stablecoin Libra.

The Financial Stability Board will hand off an official note to the Finance Ministers of G20 and Governors of Central Banks on multinational stablecoins to the October 2019 in this week’s meeting. Quarles said,

“The G7 working group will be handing off work on regulatory issues to the FSB, and we have already begun work in this area.” Recently, the G20 leaders ask for an advice of FSB on the additional multinational responses as required on the given current growths of the stabelcoins in the market.

 

Advertisement

Advertisement


Hot News

Stellar Lumens (XLM) Price Analysis: Bears Enforced XLM Price To Reach Support Level Of $0.060

Stellar Price is suffering major price corrections due to the overall downtrend in the cryptomarket.  Currently, it is facing an overall loss of -1.78%.  ...

Ethereum (ETH) Price Analysis: ETH Again Fails In Sustainability at $200

The bears are showing no mercy for ether price as it is reaching the crucial level of $198 It is also facing significant...

Ethereum Classic Claims to be the Only Secured PoW Smart Contracts Platform

Ethereum Classic (ETC) is a decentralized blockchain platform. It is a hard fork of Ethereum that lets anyone create and use Dapps. In...

Biki Launched World’s First TRX OTC Trading Area For Tron

Digital currency trading service Biki has unveiled the world's first TRX OTC trading. The availability of the altcoin is in partnership with...

Ripple XRP Price Analysis: XRP Held On Support Level Of $0.19 After Heavy Downfall 

Ripple is finally showing sustainability at the support level of $0.19  The heavy downfall faced by ripple after touching the resistance area of...

Argentina Launches Investigation Into Country’s Crypto-Trading

Argentina’s Financial Information Unit has announced that it is launching an investigation into cryptocurrency trading. Monitoring transactions and identifying money laundering and terrorist...

Partners

Ethereum (ETH) Price Analysis: ETH Again Fails In Sustainability at $200

The bears are showing no mercy for ether price as it is reaching the crucial level of $198 It is also facing significant...

Ethereum Classic Claims to be the Only Secured PoW Smart Contracts Platform

Ethereum Classic (ETC) is a decentralized blockchain platform. It is a hard fork of Ethereum that lets anyone create and use Dapps. In...

Biki Launched World’s First TRX OTC Trading Area For Tron

Digital currency trading service Biki has unveiled the world's first TRX OTC trading. The availability of the altcoin is in partnership with...

Ripple XRP Price Analysis: XRP Held On Support Level Of $0.19 After Heavy Downfall 

Ripple is finally showing sustainability at the support level of $0.19  The heavy downfall faced by ripple after touching the resistance area of...

RELATED NEWS

Stellar Lumens (XLM) Price Analysis: Bears Enforced XLM Price...

Stellar Price is suffering major price corrections due to the overall downtrend in the...

Ethereum (ETH) Price Analysis: ETH Again Fails In Sustainability...

The bears are showing no mercy for ether price as it is reaching...

Ethereum Classic Claims to be the Only Secured PoW...

Ethereum Classic (ETC) is a decentralized blockchain platform. It is a hard fork...