Stablecoins are real threat to financial stability, G7 claims

Stablecoins are real threat to financial stability, G7 claims

The Group of Seven (G7) has drafted a report on "global stablecoins", where they consider them a real threat to the global financial system.

According to an earlier BBC report, the G7 outlined the potential risks associated with digital currencies, stressing that Facebook’s Libra may not get approval from regulators.

"The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed.”

Even if they managed to Address all associated risks, still there are no guarantees that regulators will approve stablecoins, the report said.

Although the report does not specify Facebook’s Libra itself, the BBC believes it could lead to further trouble for the already besieged proposed payment system.

Global regulators are increasingly relying on the project, with the Bank of England recently drawing up provisions that must comply with them before it is issued and dealt with within the UK.

Facebook CEO Mark Zuckerberg is scheduled to testify before the House Financial Services Committee to discuss his work later this month, where he is scheduled to be in front of Democratic Representative Maxine Waters, chairman of the committee, who has more than once disclosed His criticism of the currency earlier this year.

This discussion may not be the strongest problem the currency has ever encountered, as Libra has lost many of its main partner companies to its governing union recently, with major payment companies such as PayPal withdrawing from the organization and soon followed by Visa, MasterCard, Stripe and eBay during the last period.

Meanwhile, Bitcoin is 0.41 percent down at $8,336, according to CoinMarketCap. Ripple and Ethereum were 3.97 percent and 0.66 percent up respectively.

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