G7 Central Bankers stress the need to regulate Cryptocurrency during the last meeting.

G7 Central Bankers stress the need to regulate Cryptocurrency during the last meeting.

At their last meeting, the G7 finance ministers and central bank governors discussed the need to regulate crypto rings. The German Finance Minister Olaf Scholz expressed his concern about the upcoming cryptocurrency on Facebook.

G7 sees the need to regulate Crypto

The U.S. finance minister Steven Mnuchin organized a discussion on Monday with the finance ministers and central bank governors of Canada, France, Germany, Italy, Japan, the United Kingdom, the European Commission and the Eurogroup. The meeting was also attended by the heads of the International Monetary Fund (IMF), the World Bank and the Financial Stability Board (FSB).

In addition to discussing the responses to the Covid-19 pandemic and the economic recovery measures, the G7 Finance Ministers and Central Bank Governors discussed “the ongoing responses to the evolving landscape of crypto assets and other digital assets and the work of national authorities to prevent their use for malicious purposes and illegal activities”, the Ministry of Finance said in detail, adding:

There is strong support across the G7 for the need to regulate digital currency.

“Ministers and Governors reiterated their support for the G7 joint statement on digital payments made in October,” the Ministry of Finance continued.

The G7 countries are at various stages of implementing cryptography regulations, reviewing existing laws, and providing greater clarity to investors and businesses in the space. In the U.S., for example, the Supreme Banking Regulator recently revealed that new cryptography regulations will be introduced in a few weeks and will “work for everyone”. Germany started to regulate the crypto industry in January and has since then been continuously clarifying the rules. Japan, which started regulating the crypto industry as early as 2017, is also reviewing and complementing the rules.

Concerns about Facebook-supported cryptocurrency

After Monday’s meeting, the German Finance Minister Olaf Scholz issued a statement expressing concern about allowing the launch of Facebook’s libra cryptocurrency, which has been renamed diem, in Germany and Europe. He warned:

A wolf in sheep’s clothing is still a wolf. It is clear to me that Germany and Europe cannot and do not want to accept market entry while regulatory risks are not adequately addressed. We must do everything we can to ensure that the currency monopoly remains in the hands of the states.

Scholz has long been concerned about the consequences of

Facebook’s libra/diem. Recently, the President of the European Central Bank (ECB), Christine Lagarde, downplayed the risk of bitcoin for financial stability, but expressed concern about global stablecoins, such as the Facebook-supported cryptocurrency.

The Libra Association, now called the Diem Association, said last month that the Facebook-supported cryptocentric currency could be launched as a single USD stability stimulus as early as January.

What do you think about the G7 wanting to regulate the crypto? Let us know in the comment section below.

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Published on Tue, 08 Dec 2020 15:30:37 +0000