Economy

G7 says Libra should not launch until risks 'adequately addressed'

G7 says Libra should not launch until risks 'adequately addressed'”

It can be recalled that Mastercard, Visa, eBay, Stripe, and Mercado Pago followed the steps of PayPal to withdraw their support from Facebook's Libra Association.

But it warns of the potential for money laundering, terrorist financing and other forms of illicit activity as well as data theft.

"Some emerging countries have concerns on what could happen if stablecoins backed by a huge customer base become widely used globally", said Kuroda, who was among the global finance leaders gathered in Washington this week for the International Monetary Fund and World Bank fall meetings.

German Finance Minister Olaf Scholz on Friday redoubled his criticism of Facebook's plans to launch its Libra cryptocurrency, and said creation of a new world currency should be prevented.

The Group of Seven economies on Thursday had said any reserve-backed digital currency like Libra - known as a stablecoin - would require a sound legal framework before entering circulation.

"They didn't just say yes to a new currency as a medium of exchange; they consciously made a decision to transfer part of their sovereignty to the European level".

While setting regulations on stablecoins, policymakers will also debate ways to make existing cross-border settlement and payment systems more efficient, BOJ's Kuroda said. They said they want to completely veto the currency to "protect" the autonomy of democratic states, adding that the currency could also threaten control over exchange rates.

"I repeat our priority today is to work with regulators to answer their legitimate questions and provide all necessary assurances", said Bertrand Perez, managing director of the association. It is feared that it would be both hard to regulate and ensure that it does not disrupt monetary policy or facilitate money laundering and tax evasion. He said France would not allow a private company "to have the same monetary power as sovereign states".

He noted that Libra was due to be backed by a basket of currencies and assets, a principal sticking point.

Facebook's digital currency chief David Marcus told reporters in Washington that the issues raised by Le Maire are "legitimate concerns".

Details: If the USA fails to come up with a good answer to digital currency in the next five years, the future will be China "re-wiring" a large part of the world, Marcus said in a recent interview with Bloomberg.



Like this

loading...
loading...

Latest


19 October 2019
First look at NASA's next generation spacesuits for moon exploration in 2024
These particular suits are created to be worn during take-off and landing, and for protection within the spacecraft and the ISS. Earlier Tuesday, the US Space Agency unveiled designs for what will be its next-generation spacesuit , known as the xEMU.

19 October 2019
Paul Gascoigne cleared of sexual assault after kissing woman on train
She showed the jury photos of Gascoigne kissing fellow players and fans, and his character witnesses described him as tactile. Former England global Paul Gascoigne has been found not guilty of sexual assault after kissing a woman on a train.

19 October 2019
Samuel Adam's creates special Halloween beer illegal in 15 states
Samuel Adams is bringing its Utopias beer back just in time for Halloween, but not everyone will be able to find the brew. Samuel Adams' 2019 Halloween brew is illegal in 15 states because of it's frighteningly high alcohol content.

19 October 2019
Coca-Cola's quarterly sales tops Wall Street expectations
Shares of the Atlanta-based company rose 2% before the opening bell, adding to the 14% they have gained this year. Among 6 analysts covering Coca-Cola Company (The) Common Stock (NYSE:KO), 2 have Buy rating, 0 Sell and 4 Hold.

19 October 2019
Indian Idol 11: Neha Kakkar shocked as a fan kisses her
With each audition episode, we get to hear a heartening story of contestants who are struggling to make a mark and make it big. What many might not know is that she was also a contestant on the show in its second season but was voted out.

19 October 2019
Hillary Clinton warns of Russian Federation pawns; Tulsi Gabbard hits back
"They have a bunch of sites and bots and other ways of supporting her so far", Clinton said to Plouffe during the interview. Merrill did not respond to a request for comment but has published negative tweets about Gabbard in recent days.

19 October 2019
China Economic Growth Unexpectedly Slows to 6% in Third Quarter
China's exports to the United States , its biggest foreign market, fell 21.9 percent in September from a year ago. Prices of soybeans, iron ore and other commodities have fallen, hitting Brazil, Australia and other suppliers.

19 October 2019
Brexit in the balance as British MPs hold historic vote
Speaking from Brussels, Brexit Party Leader Nigel Farage MEP speaks to GMB about the deal that Boris Johnson has taken to the EU . Business in the House of Commons will start at 9:30 BST - the first weekend sitting since the invasion of the Falklands in 1982.

19 October 2019
Amitabh Bachchan discharged from Nanavati hospital
The news did not broke and the actor himself did not share it to his fans despite being very much active on his blog and Twitter. Bachchan reportedly confessed he had been leading a life with only 25 percent of his liver functioning.

19 October 2019
Cowboy Bebop: Netflix Series Halts Production After John Cho Injured On Set
Cowboy Bebop is an anime series which focuses on a team of bounty hunters working on the spaceship Bebop in the year 2071. Cho is back in Los Angeles, where he will undergo surgery, according to a person familiar with the matter.