The G7 declared the need …

The G7 declared the need …

Freestyle Libre 3 Announced- Everything you need to know

Contents

G7 announced the need to regulate cryptocurrencies
CONTENT

  • G7 wants to accelerate the implementation of mechanisms for regulating the turnover of cryptocurrency

  • European Parliament and US oppose Libra

  • Facebook intends to launch Diem stablecoin in 2021

The G7 declared the need ...

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The finance ministers and heads of the central banks of the advanced economies of the G7 declared the need to introduce mechanisms for regulating the turnover of cryptocurrency.

Libra is a wolf in sheep’s clothing

The G7 countries are again concerned about the possible launch of the Libra stablecoin In June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project instantly attracted the attention of … More developed by the Facebook teamIn June 2019, Facebook announced preparations for the release of the Libra digital currency. The social networking project immediately caught the attention of … More, which could become a global means of payment and replace a number of fiat currencies, thereby shattering the financial balance. The finance ministers and heads of the central banks of the G7 countries held an emergency online meeting, at which they again raised the issue of introducing cryptocurrency regulation mechanisms. 

During the meeting, German Finance Minister Olaf Scholz made a strong statement highlighting his concerns about the authorization of the launch in Germany and Europe of the Libra cryptocurrency from Facebook, recently renamed Diem.

“A wolf in sheep’s clothing remains a wolf. It is clear to me that Germany and Europe cannot and will not agree to accept its (Diem-ed.) Market entry until the regulatory risks are properly addressed. We must do everything possible to keep the currency monopoly in the hands of states, “he said..

G7 financial officials also discussed current responses to “the changing landscape of cryptoassets and other digital assets, as well as the work of national authorities to prevent their use for malicious purposes and for illegal activities.” According to G7 experts, the coronavirus pandemic has contributed to the adoption of cryptocurrency in most countries of the world. This fact is also associated with the growth of cases of financing crimes related to drug trafficking, as well as trafficking in persons..

The G7 declared the need ...

G7 officials reaffirmed their support for the October G7 Joint Statement on Digital Payments, which said digital payments can improve access to financial services and reduce inefficiencies and costs, but must be “properly monitored and regulated.”.

Facebook’s stablecoin is the enemy of the system

Note that the European Parliament, together with the US Congress, has been fighting the Libra stablecoin for several months. Earlier, the German representative in the EU called on banks not to finance the creation of Libra and not to issue loans to Facebook under any pretext..

“We will closely monitor the situation using all the means at our disposal. I am not a supporter of the creation of such a global currency, because it is the task and responsibility of democratic states, ”Scholz said..

After a fierce confrontation between the authorities, members of the Libra foundation began to abandon the project. Nevertheless, Mark Zuckerberg himself is determined to launch his brainchild in the upcoming 2021.

The G7 declared the need ...

In April, the Libra Association decided to change the original model of the project, abandoning the Libra pegging to several fiat currencies at once. In an attempt to please skeptical regulators, Facebook said the project will support multiple versions of digital currencies, most of which will be pegged to fiat currencies such as the US dollar. However, according to an anonymous source from the Financial Times, Facebook will first release Libra like a stablecoin pegged to the US dollar on a 1: 1 basis. Support for other currencies will be added later.

It is noted that the exact launch date for Libra will depend on when the project receives approval as a payment service from the Swiss financial market supervisor..

BeInCrypto editorial staff will follow the development of the project.

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