Report: G7 financial leaders say they will oppose Libra until it is 'adequately' regulated

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 SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

“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.

 

About Author

Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.