Altcoin News: G7 Sees Global Stablecoins as a Threat to Financial Stability
October 14, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
The G7 working group said that launching global stablecoins could threaten the stability of the global financial system.
In its statement, the organization describes the various risks associated with the use of digital currencies. The document notes that even if the companies that are part of the Libra association satisfy all the requirements of regulators, the launch of stablecoin can still be prohibited.
“The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed,” the statement says.
Representatives of the G-7 also emphasized that global stablecoins have the potential for rapid growth and may jeopardize financial stability if users suddenly lose confidence in a stablecoin.
“Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement,” the report says.
It is reported that the document will be presented for discussion by finance ministers of countries included in the G7 at the annual meeting, which will be held this week.
Regulators from various countries continue to criticize the Libra cryptocurrency project, and such a statement could further complicate the launch of stablecoin. Recently it became known that some companies have already refused to participate in the project.
Author: Marko Vidrih
