G7: Libra can't start unless regulated properly
On Tuesday, the financial leaders of the world's biggest seven economies, known as Group of Seven (G7) stated that they are against the launch of Facebook's Libra stable coin unless it is properly regulated. Stable coins are a basket of assets used to pay or store value. The rejection of Libra is poured into the draft of the G7 meeting between finance ministers and central bankers of the United States (U.S), Canada, Japan, Germany, France, Italy, and Great Britain.
As quoted by Reuters, while G7 sees that digital payment is one of the best solutions to financial services, efficacy, and cost, it has to be properly regulated and supervised so that it will not disrupt financial stability, customer protection, privacy, taxation, and cybersecurity. Therefore, without proper supervision and regulation, G7 is afraid that Libra could be exploited for money laundering, terrorism, and could compromise market integrity, governance, and legal certainty. In April 2020, G20's Financial Stability Board (FSB) gathered 10 recommendations for an international approach in regulating stable coins after American social media company, Facebook, proposed the Libra stable coin.
Moreover, G7 noted that they are exploring the ups and downs of central bank digital currencies (CBDCs). G7 stated their concerns about the growing ransomware threats as the novel coronavirus disease (COVID-19) pandemic has been disrupting online economic activities since its rise in late 2019.