Facebook’s Libra catches G7 task force attention: Report spells doom for all stablecoins

• Concerns regarding Libra-like stable coins range from money laundering risks, regulatory concerns as well as terrorism.
• The G7 group of nations will not allow any global stablecoin to launch until all concerns and risks are addressed.

The G7 task force in its latest report did not shy away from addressing concerns raised by the mushrooming stablecoins in the cryptocurrency industry. The questions have been brought about mostly by Libra, the prosed stablecoin by Facebook.

The report notes that stablecoins like Libra put the global financial system at greater risk. It also appreciates that the asset class carriers with it a massive potential in the field of payments.

The report released on October had been requested by the Finance Ministers of the seven countries. The report clearly states that the countries will not give a go ahead for any stablecoin unless all the concerns and risks are ironed out. According to another report (unpublished) by Cointelegraph on October 14:

“No global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks outlined above are adequately addressed, through appropriate designs and by adhering to regulation that is clear and proportional.”

The current report on stablecoins notes that they have the utility of supporting global payments unlike the first phase of cryptocurrencies which failed not just as a means of payment but also a store of value. Stablecoins are faster, cheaper and provide an inclusive approach to existing financial systmes.