Facebook’s currency project Libra needs to assert himself for months against strong political headwinds. Now a report from the G7 countries, warns of the risks of global stablecoins. According to the experts, this could be, among other things, the risk to global financial stability. Also, the Financial Stability Board FSB underlines in his critical attitude in a letter to the G20 members.
By David Barkhausen
14. October 2019BTC$8.587,15 15.26%part Facebook Twitter LinkedIn xing mail
it Goes to Facebook and its daughter organization, Calibra, should be the start of the currency project Libra, in the meantime, little in the way of that. Already for the second half of the year 2020, the market is recognized in the introduction. But the date seems too optimistic to be chosen. In the Wake of a violent wind on the part of the policy, Central banks and Supervisory authorities of the sky for the group’s currency will darken. Now Libra gets out of the G7 for the next shock.
As the British news channel BBC, this Sunday, the 13th. October, reported, warns a draft report of the G7 countries against the risks of global used digital currencies such as Libra. Among other things, it was stated that this would limit the ability of Central banks to operate an effective interest rate policy.
report to be presented to meeting on IMF-Minister
Due to the large market could push Libra in addition, not only other competitors from the field power of Facebook. In addition, the project could be ultimately even a threat to global financial stability. In addition to his already-registered users, Facebook wants to achieve with its monetary project with the up to 1.7 billion people currently live without any access to the financial system.
there Would, in the future, then a Crash of the Stable Coins, this could put according to the experts, the global financial economy is lame, should a user lose confidence in Libra.
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From the publisher of global stablecoins, it is important, therefore, to ensure that currency projects such as Libra to be legally watertight. Also money laundering risks would need to be removed. As it says in the report:
The G7 are of the opinion that there is no Stable Coin-the project should go to the Start until the legal, regulatory and Supervisory challenges and risks have been adequately addressed.
But even if the risks are eliminated, this is no guarantee for the blessing of the legislature, summarizes the report of the G7 task force. For this had happened before, in addition to representatives of the national Central banks, experts from the International monetary Fund (IMF) and the Financial Stability Board (FSB) together.
The joint analysis you want to present at the annual Meeting of IMF Finance Ministers. This will take place this week in the US capital, Washington.
Financial Stability Board underlines criticism
In a letter to the Finance Ministers of the G20 countries highlights from the FSB Chairman Randal Quarles, meanwhile the warnings of the G7 working group.
The introduction of „global stablecoins“ provides the regulatory community with numerous challenges, not least because these have the potential to be relevant to the system,
the chief of the FSB warns. His mission is to the legislative initiatives of the world’s leading economic Nations coordinate.
Although the technology had decentralized currencies groundbreaking Potential for the processing of international Transfers. Nevertheless, the global Stable Coins are still major hurdles in the areas of privacy, tax evasion, competition policy, and Cyber-security in the way.
later this month, his Organisation intends to submit a first report with assessments. By July 2020, then the final action is to have recommendations for the legal consequences of Libra & co..
During the meantime with your Visa, MasterCard, and PayPal is increasingly the biggest partners of Facebook’s Calibra organization get out, is likely to move the market introduction of the Libra is still months, if not years in the future. This is also the for October the scheduled hearing of Facebook CEO Mark Zuckerberg in the US can Congress change anything.
More:
Libra in front of the Bundestag: „We don’t see the Problem,“ Libra-hearing: sugar mountain, „a tool for theft,“ U.S. Finance Committee is sharpening the knife: bill wants to regulate Stable Coins as securities#Facebook#G7#Libra
