The group of 7 nations has published a very critical report on the cryptocurrencies. According to the report, even the leading cryptocurrency, bitcoin has failed to provide reliable means of payment or store of value. The report published on Thursday said that cryptocurrencies are not a solution as they are highly volatile and challenging to regulate correctly.
The report targeting stablecoins said that remittances are slow and expensive. It further claimed that stablecoins are not really stable. The Libra Association responded to the report saying that Libra stablecoin would operate with transparency and in partnership with regulators. According to the G7 report, no global stablecoin project should begin without addressing legal, regulatory, and oversight challenges and risks.
The G7 report advises governments to develop road maps for improving the efficiency and lowering the cost of payments and financial services. The group of seven nations further suggested that central bank-backed digital currency should remain in the jurisdiction of banks to study their relevance.