Financial leaders from the world's seven largest economies (G7) will oppose the launch of Facebook's Libra stablecoin until it is "adequately" regulated, according to a Reuters report published Monday.
Reuters reviewed a draft statement that had been prepared for a meeting of finance ministers and central bankers from the U.S., Canada, Japan, Germany, France, Italy and Britain. According to the report, the statement said that although digital payments have several benefits, payment services must be supervised and regulated to protect consumer privacy and maintain cybersecurity.
Without more oversight, stablecoins like Libra could be used for illegal financial activities, the statement warned, according to Reuters.
“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards,” the draft said.
The statement comes several months after the Financial Stability Board, which coordinates rules for the Group of 20 (G20) economies, published a list of high-level recommendations for how financial regulators around the world should approach stablecoins.