The G7 Expresses “Strong Support” for Cryptocurrency Regulation
Central bank governors and G7 finance ministers discussed the issue of cryptocurrency regulation this Monday. US Treasury Secretary Stephen Mnuchin brought together a virtual meeting. It was attended by representatives from Canada, France, Germany, Italy, Japan, Great Britain, the European Commission, the International Monetary Fund, the World Bank and the Financial Stability Board.
According to the US Treasury, the main topic of the meeting was the coronavirus pandemic, but the participants also found time to consider some other issues. Thus, the question of responding to the development of “the space of cryptoassets and other digital assets, including the work of national authorities to prevent their use in illegal activities” was raised.
The Ministry of Finance notes that representatives of the G7 share the opinion about the need to regulate digital currencies. “Ministers and governors confirmed their support for the joint G7 statement on digital payments, which was released in October,” the agency writes..
The October 13 announcement said that digital payment service providers “must apply the necessary oversight and regulation to meet the challenges and risks of financial stability.” The G7 recognized that alternatives to payment systems “have the potential” to increase the availability, speed up and cheaper payments, but at the same time may pose threats if they are not controlled.
In addition, the representatives of the G7 emphasized that it is the public sector that is responsible for the functioning of monetary circulation, as this allows guaranteeing “the safety and efficiency of payment systems, financial stability and achieving macroeconomic goals.”.
Cryptocurrencies, in their opinion, threaten the state’s monetary sovereignty, so they should be regulated “properly”. In particular, such statements have been repeatedly made about the Libra stablecoin, recently renamed Diem.
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