G7: Libra cannot go ahead before Facebook proves its security

Trump 5 7

G7 report states that no stablecoin can be launched in the markets before its parent company has proved its security and reliability. The group of seven (G7) consists of world-leading nations, including the U.S, the U.K, France, Germany, Japan, Canada, and Italy.

The group believes that no stablecoin should have the authority to begin operations unless regulatory bodies have certified its security. G7 thinks that the project must first overcome any legal, challenges, and risks before launching the product. The news was reported on a BBC report that was published this Monday.

However, the report added that overcoming the legal hurdles does not “guarantee” that the project would receive a green light from regulatory bodies.

Facebook’s Libra has been the center of attention since its announcement earlier this year. The project has shaken regulatory bodies across the globe, as it seems terrifying to countries worldwide. Furthermore, Facebook’s reputation has not done the project any favors as legislators wonder if such a company should be allowed any more power than it currently holds.

G7 to present a report at IMF

The G7 created a task force when Libra was created. The task force is dedicated to stablecoin projects and researches them. The group submitted the report that will be presented to finance ministers at the International Monetary Fund (IMF) annual meetings.

The report read that global stablecoins that have the potential to “scale rapidly” bring a lot of regulatory challenges. Facebook’s Libra is not the only project that is under scrutiny. Reportedly JPMorgan’s stablecoin JPM Coin is also likely to be under examination.

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

Related News

Hot Stories

FTX CEO unhappy as crypto firms fail to aid each other
How to Stake Zilliqa: Earn 6% APY based on 80% ZIL in Circulation
Cardano price analysis: ADA could rise up to $0.67 after surviving $0.51 support test
How to Stake Spell Token: Earn up to 20% APY
Gala is announcing a partnership with Stick Figure Productions to distribute Four Down on the Blockchain

Follow Us

Industry News

FTX CEO unhappy as crypto firms fail to aid each other
BlackRock launches spot BTC private trust
Tornado Cash few accounts unblocked as dYdX affirms it adhered to Treasury’s ban
Renbridge Used by Cybercriminals to Launder $540M by Chain Hopping
Hotbit halts trading activities on its platform