G7 taskforce addresses concerns and risks associated with Libra, other stablecoins also pushed to the red zone – Libra News

Facebook's Libra did not escape the attention of the G7 taskforce. The group of seven nations released a report reciting a spell of doom for all stablecoins. Focusing on Libra, the countries state the threat Facebook's project can produce on the existing financial system. The current report on stablecoins highlights their expected utility for global payments as they are faster, cheaper, and provide an inclusive approach to the monetary arrangements.

ADVERTISEMENT

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.

ADVERTISEMENT
Avatar
Saloni Sheelwant
Saloni Sheelwant treasures to research and write about the new startups and technologies thriving at a very fast pace.

Leave a reply

Please enter your comment!
Please enter your name here