February 20, 2024

G-7 Group: Cryptocurrencies have become a speculative asset class, not a means of payment

G7 Group: Cryptocurrencies have become a speculative asset class, not a means of payment

According to a report from the Group of Seven (G7) countries, cryptocurrencies are still not ready to be used asmeans of storing value.

On Thursday, the group, which includesRegulators in France, the US, Japan, Canada, Italy, Germany and the UK have published a final report on stablecoins, recognizing the fact that traditional money transfers are expensive and slow. So, in their opinion, global stablecoins can solve these problems, although they are “quite unstable”, have scalability limitations, as well as governance and regulation problems.

Thus, cryptocurrencies have become morea speculative asset class for certain investors and those involved in illegal activities, rather than a means of settlement, – the group thinks.

Since stablecoins are more convenient for payment and storage of value, issuers must ensure compliance with the necessary regulations.

Not a single global project to createstablecoins should not be launched until the legal, regulatory and supervisory issues and risks […] are properly addressed through appropriate designs and adherence to clear and proportionate regulations, – G7 said.

 

Representatives of the G7 also notethat governments should develop business plans to increase efficiency and reduce the cost of payments and financial services. Further, “central banks will assess the relevance of issuing central bank digital currencies (CBDC), taking into account the costs and benefits in their respective jurisdictions.”