In yet another opposition from the G7, British broadcaster BBC has reported that the group has prepared a report in which stablecoin is being considered as a threat to the global financial system. According to the broadcaster, the G7 group also outlined the various risk associated with cryptocurrencies and gone to the extent of saying that even if the member organizations associated with Facebook’s Libra project meet all the regulatory requirements, the project might not get the permission from the regulatory authorities. Just a couple of months ago, officials of the G7 group of countries had criticized Facebook’s Libra project.
The major worry of the G7 group is that the meteoric rise of stablecoin could pose a threat to the financial stability of the world if users lose confidence in them. This report is to be presented to the finance ministers who will be meeting at the annual event of the International Monetary Fund.
Although there is no clear indictment of the Libra project in this report, experts agree that these observations are going to spell new trouble for the already beleaguered project. Globally, Libra is facing stiff opposition from most of the countries with recently Bank of England coming out with a set of compliance that Facebook’s digital coin must meet before it gets the permission to operate in the country.
Facebook’s CEO, Mark Zuckerberg, is also scheduled to testify before the United States House of Representatives Financial Services Committee in the coming days regarding the Libra. It’s important to note that Libra has already lost most of its partner organizations, including the likes of PayPal, Visa, MasterCard, eBay, and Stripe. Even it has got a lawsuit filed against it by Finco Services alleging the infringement of trademark and Logo.
