The G20 members which are listed below have gone to the International Monetary Fund (IMF) and asked for help to establish the implications of stablecoins.
G20 Nations: Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States.
In a press release the nations said:
“We ask the IMF to examine macroeconomic implications, incliding monetary sovereignty issues in its members of global stablecoins”
They added: “while acknowledging potential benefirs of financial innovation. We agree global stablecoins give rise to set of serious publice policy, regulatory risks. Risks such as money laundering illicit finance, consumer and investor protection, need to be evaluated, addressed before stablecoin projexts can commence operation.
These breaking comments show that governments worldwide are extremely worried about the impact of stablecoins. Also today German, France and Italy announced that the three nations will be working together to block the stablecoin from Facebook, Libra.
This week, the future of money conference was taking place in Washington and there has been comments from government representatives. Most of them welcome financial innovation but are concerned that a derivative of a currency (ie. a stablecoin) could impact the world negatively due to major security concerns. The issue is tracking, the peer to peer structure of blockchain means there is no need for a regulated financial intermediary like a bank. Crucially this means there is no regulatory control to help catch criminals making illegal transactions.
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