Facebook’s stable coin, the much-speculated coin of 2019 is experiencing increased scrutiny before its official launch. The coin will be launched at the beginning of 2020 as per Facebook.
Recently, the two-day meeting was scheduled to discuss on Facebook’s Libra project outside Paris that rolled out on July 18th, Thursday. During the two day meeting, G7 financial ministers and other central bankers have addressed a new concern with regards to Facebook’s proposed crypto project ‘Libra.’
According to France, the current G7 chair, Libra project of Facebook might be dangerous to the international financial system. It’s still, not prepared to be implemented. The unclear technique might be used to carry illegal activities by criminals.
G7 finance ministers have issued warnings relating to its threats for the world economy at the meeting.
On June 18th, Facebook officially released its plan over the Libra project. Facebook, after announcing the project, received comments from government officials and other opponents. The government officials raised concern over Facebook’s crypto project and opponents of Facebook; the social media giant popularity has already been damaged for circulating false information and videos.
Group of Seven (G7) leading global economies Ministers they all accepted that crypto project such as Libra might impact monetary sovereignty and also the working of the oversea monetary system, France mentioned in a statement.
It mentioned crypto projects, for instance,
”Libra with global and potentially systemic footprint… raise serious regulatory and systemic concerns, as well as wider policy issues, which both need to be addressed before such projects can be implemented.”
Maximum Questions Raised
The G7 meeting was organized in Chantilly of Paris. The meeting noted intense discussion with the European ministers and the US ministers across taxation. The ministers easily agreed on the key risk of Facebook’s Libra project.
Members of the G7 group shared ‘very strong an in a unanimous way a desire for vigilance…. And rapid action’, governor Francois Villeroy de Galhau of Bank of France mentioned.
He declined that finance ministers and central bankers were seeking to restrict in any way of financial-based innovation but mentioned it could not be implemented in a way that damages the consumer’s security and offers uncertainty into their transaction value.
He informed BFM Business that Facebook’s Libra project is been surrounded by numerous questions and it cannot start unless these questions have been addressed properly.
German’s Federal Minister of Finance, Olaf Scholz stated that maximum ministers and central bankers participated in the meeting had serious doubts on the Libra project.
He told we are discussing over currency stability, data protection, security and democratic control.
Libra stable coin of Facebook is considered as a key opponent of the world’s top cryptocurrency Bitcoin. The coin will be launched in 2020. Libra coin is developed to be supported by the basket of currency assets to prevent the volatility of Bitcoin and altcoins.
European Central Bank’s Executive board member, Benoit Coeure drafted a report for the G7 group mentioned severe threats of digital currencies.
The report stated, such kind of assets have usually experienced serious price volatility with the minimum capacity to perform transactions compared with current arrangements.
Such cryptocurrencies have raised danger to priorities including anti-money laundering and countering the financing of terrorism, consumer and data protection, fair competition, cyber resilience, and tax compliance.
The report, at last, concluded by saying that cryptocurrencies developers must significantly work on the project to get acceptance from relevant officials.
US Treasury Secretary Steven Mnuchin had also raised concerns on Libra project and altcoins.