Facebook’s proposed Libra ‘cryptocurrency’ has run into further resistance, this time from a G7 taskforce. The group issued a report stating that ‘global stablecoins’, such as Libra, should not begin operation until proven safe and secure.
Libra Is A Risk To The Global Financial System
Whilst not singling out Libra specifically, the report says that ‘global stablecoins’ with the potential to ‘scale rapidly’ raise a host of potential problems. These include issues for policymakers trying to set interest rates. Until such problems are addressed then the report recommends approval for such projects should be withheld.
The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed
With reference to Libra, the report has concerns that Facebook could stifle competition, and that a loss of confidence in the currency could lead to financial instability.
Backers Must Prevent Money Laundering
Any backers of such a ‘global stablecoins’ must be…