Cryptocurrency

G7 Set To Oppose Facebook Libra Over Lack Of Regulations

Facebook's proposed global digital currency Libra is expected to get pushback from G7 leaders who are anticipated to publicly oppose the project due to a lack of regulations, according to a Reuters report on Monday (Oct. 12). 

The draft will be presented on Tuesday (Oct. 13) during a meeting of finance ministers and central bankers from the U.S., Canada, Japan, Germany, France, Italy and Britain. The meeting will discuss the pros and cons of digital payments and financial services.

The draft statement seen by Reuters indicated that any electronic currency system would have to be “appropriately supervised and regulated so that they would not undermine financial stability, consumer protection, privacy, taxation or cybersecurity.”

The fear is that stablecoins could be used for money laundering and terrorist financing, among other crimes.

“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards,” the draft said, as per FT.

The G7 draft also notes that a number of G7 authorities “are exploring the opportunities and risks associated with central bank digital currencies (CBDCs).”

The European Central Bank head Christine Lagarde said on Monday that the bank was “very seriously” looking into a digital euro.

The G7 draft also considered what to do about the rise in ransomware attacks due to COVID-19 and the online shift in economic activity.

“These attacks, which often involve payments in crypto-assets, jeopardize essential functions along with our collective security and prosperity. We affirm our resolve to combat this threat collectively as well as individually,” the draft said.

Libra has had a topsy-turvy entre into the digital currency arena. Last year, Facebook head Mark Zuckerberg appeared before the U.S. House Committee on Financial Services to both promote and defend Libra.

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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