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G7 countries plan to oppose Facebook cryptocurrency

The finance ministers of the G7 countries — the UK, Germany, Italy, Canada, the United States, France, and Japan — are set to oppose Facebook's Libra cryptocurrency project, Reuters reported. According to the agency, the G7 believes that the digital currency of the American social network needs regulation, otherwise it can contribute to money laundering and terrorist financing.

Digital currency payment transactions need control and oversight to ensure financial stability, consumer protection, privacy, and cybersecurity, the draft joint statement says. According to policymakers, the lack of regulation of stablecoins will undermine legal certainty and jeopardize the legal integrity of the market. At the same time, the G7 recognizes that the use of digital currency can improve access to financial services and reduce costs.

“The G7 continues to insist that global stablecoin projects should not be implemented until they meet all the necessary requirements,” — quotes Reuters from the draft G7 statement.

The G7 countries will issue a joint statement on Tuesday, October 13, Japanese Finance Minister Taro Aso told the agency. The politician did not comment on whether it will be associated with Libra.

Facebook announced the launch of Libra in June 2019 — it should become a stable cryptocurrency, running on its own blockchain and supported by a basket of financial assets. It was planned that the new digital currency will be supported by assets denominated in four major currencies — USD, EUR, JPY, and GBP.

Initially, the launch of the cryptocurrency was scheduled for early 2020, but then the dates were postponed. In April 2020, it became known that Facebook abandoned the previous concept of Libra, which implied the issue of a single coin — the company plans to issue several stablecoins that will be pegged to the rates of various national currencies. The Libra Association, which manages the project, decided to change the concept after harsh criticism from regulators - for example, the US government demanded to freeze development until there is legal certainty on the issue of stablecoins

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