A report of the Group of Seven Nations (G7) revealed that some of the largest economies in the world believe that the Libra Facebook cryptocurrency should not be launched until their potential risks are “adequately addressed”.
The report with the BBC Outlining the main risks associated with cryptocurrencies such as Libra, it is noted that supporters should be legally sound, protect consumers, and ensure that cryptocurrencies are not used to finance terrorism or money laundering.
The report does not highlight Libra, but instead refers to “global stable coins (stablecoins)” with the potential for “quick scaling”. Some of these risks include a potential threat to the financial stability of users suffering from a sudden “loss”. trust in Libra, ”and also as a threat to policy measures.
A report to be submitted to finance ministers at the IMF's annual meeting states:
The G-7 believes that no stable project should begin its work until the legal, regulatory and control tasks and risks are properly addressed
The document also adds that even if the Libra Association manages to mitigate the risks listed in it, it still does not guarantee "regulatory approval for a stable currency agreement."
In a separate document, the Financial Stability Board (FSB), which coordinates the rules for G20, noted that stable coins like Libra pose various challenges to financial stability and investor protection, among others.
In a paper, Randal Quarles, chairman of the FSB, said these problems should be “ evaluated and resolved as a matter of priority. ” BBC report presented shortly after Mastercard, Visa and eBay join PayPal and leave the Libra Association.
David Marcus, Head Facebook, Leading project, evaluated news on social networks:
I would caution against reading the fate of Libra into this update. Of course, it's not great news in the short term, but in a way it's liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you're on to something when so much pressure builds up.
- David Marcus (@davidmarcus) October 11, 2019
It is noteworthy that the G7 report also acknowledges that cryptocurrencies can potentially provide a faster and cheaper way to move money, since the existing system can be “slow, expensive and opaque”. The first meeting of the board of the Libra Association is due to take place on Monday in Geneva.