G7 Opposes Facebook’s “Global Stablecoin” Libra

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Last Updated on 13 October 2020 by CryptoTips.eu

Jeroen Kok

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Such is the power of Mark Zuckerberg’s Facebook that any possible development of a “global stablecoin,” which is what most people would call a crypto with a possible 2 billion users, can herald a warning from the world’s biggest economies. According to a draft statement obtained by Reuters, the governments of the G7 will launch a demand to stop any further development of Facebook’s Libra coin until it is properly regulated.

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Brexit meeting

Earlier this year, the European Union had also expressed it’s fear of the launch of Libra and as they are getting ready later this week to discuss the Brexit deal that UK Prime Minister Boris Johnson wants to remake, you can be sure that Libra will be discussed in the sidelines as well.

Reuters has obtained a draft version of the statement approved by the governments of the United States, Canada, Japan, Germany, France, Italy and the U.K, which reads:

The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.

Schooling congress

Whereas last month I remember writing about how Zuckerberg once schooled congress on how the internet works (during an explanation of a Texas Republican who aimed to regulate crypto like wheat), it now seems worldwide governments are indeed very aware of the lead Facebook has in developing a global currency.

They said:

payments in crypto-assets, jeopardize essential functions along with our collective security and prosperity. We affirm our resolve to combat this threat collectively as well as individually.

Looks like Facebook is onto something is all we can say in response.