The group of seven nations’ (G7) taskforce, in its latest report, did not hold back from addressing concerns raised by the sprouting stablecoins in the crypto industry, majorly focusing on the controversial Libra. The report states that Facebook’s project can prove to be fatal for the existing financial system.
The group, including France, the US, Canada, Japan, Germany, Italy, and the UK, as the members take a tight hold to halt the developments of any global stablecoin until all concerns and risks associated are wholly solved. As per the report, “No global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks outlined above are adequately addressed, through appropriate designs and by adhering to regulation that is clear and proportional.”
The present report on stablecoins states that the coins carry with them, a massive potential in the field of payments, unlike the earlier phase of crypto coins. Libra, simultaneously, holds the capability of broad adoption, which can harm the usage and value of the traditional money. Stablecoins are comparatively faster, cheaper, and render a comprehensive strategy towards the current fiscal management.