G7: Stablecoins can threaten financial systems
The pressure on projects issuing stable cryptocurrencies secured by fiat currency is growing. The G7 issued a report stating that ‘global stablecoins’, such as Libra, should not begin operation until proven safe and secure. The draft report has outlined at least nine risks such as digital currencies pose.
“The G7 believe that no Stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed.” - stated in the report.
According to the draft report from the G7 outlined the various risks associated with digital currencies. Whilst not singling out Libra specifically, the report says that ‘global stablecoins’ with the potential to ‘scale rapidly’ raise a host of potential problems. The G7 believes that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed.
The report said that, even if member firms of the governing Libra Association addressed regulatory concerns, it may not get approval from the necessary regulators. The G7 stated that Facebook could stifle competition and that a loss of confidence in the currency could lead to financial instability.
15 October, 2019 12:11
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Researchers at the analytical portal LongHash, analyzed the list of the so-called dead crypto coins. It found out that the most common reason behind their decline was abandonment from investors.
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