The G7 summit has collectively voiced concerns regarding the latest development in stablecoins and called them a danger to international financial stability. According to a 13 October draft that was released by the 7-country union was widely critical of the development of stablecoins despite increasing regulatory clarity back at home regarding these projects.
According to the draft:
“…The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed…”
The report went on to state that the stablecoins could eventually be a danger to the financial stability around the world. The G7 is a global group of countries comprising Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
It is clear that the Libra project from Facebook has rattled a lot of nerves around the world and instead of making things better around the world, it may have pitted stablecoins against the world governments. The Libra project may be far from realization right now but the ones to suffer in the near future due to any stricter regulations will be the stablecoins currently available in the market including USD Tether, USD Coin, Gemini and others.
It remains to be seen what the global unions like the G7 decide on this matter in the near future.
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