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2019-10-14

G7 Affraid of Crypto

The G7 reportedly produced a report which concluded that 'global stability coins' pose a threat to the global financial system.

According to the BBC on 13th October the draft G7 report outlined the various risks associated with digital currencies. It also states that even if the member firms of the ruling Libra Association have referred to regulatory issues, it may not be able to obtain the consent of the necessary regulatory authorities.

The report will allegedly be presented to the finance ministers at the annual meeting of the International Monetary Fund this week. 

The BBC states that although the report does not detail the Libra stablecoin project proposed by Facebook, this could mean further problems for an already besieged payment system.  

Global regulators are increasingly relying on this project, and the Bank of England has recently been laying down rules that it has to comply with before it can be issued in the United Kingdom.

Facebook Chairman Mark Zuckerberg will testify before the US House of Representatives' Financial Services Committee on Libra later this month. The head of the committee, the Democratic Representative Maxine Waters, has been spotted as a critic of the project. At the beginning of this year, the committee developed the "Keep Big Tech out of Finance Act" project.