Daily Management Review

G7 countries may oppose libra cryptocurrency launch


The finance ministers of the G7 countries (UK, Germany, Italy, Canada, USA, France and Japan) are likely to oppose the launch of Facebook's Libra cryptocurrency.

Alpari Org
Alpari Org
Reuters reported this on Monday with reference to the draft G7 statement.

According to the agency, the document says that payments in digital currency can improve access to financial services and reduce costs, but such transactions should be monitored and supervised to ensure financial stability, consumer protection, cybersecurity, and privacy.

Without such controls, the use of "stablecoins" (cryptocurrencies backed by an asset) can lead to money laundering and terrorist financing.

"The G7 continues to believe that no global stablecoin projects should be implemented unless they adequately address the necessary legal, regulatory and regulatory requirements," Reuters quotes an excerpt from the document.

Facebook announced in June 2019 that it plans to release its own cryptocurrency, Libra, next year. The functioning of the new currency will be based on blockchain technology: a decentralized database, the storage devices of which are not connected to a common server.

source: reuters.com