September 30, 2020

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

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

According to the report of the G7 countries, cryptocurrencies are still not ready for use as means of accumulating value.

Thursday, a group of which includesregulators in France, the USA, Japan, Canada, Italy, Germany and the United Kingdom, published a final report on stablecoins, recognizing the fact of the high cost and slowness of traditional money transfers. So, in their opinion, global stablecoins can solve these problems, although they are “quite unstable”, have scalability limitations, as well as problems with management and regulation.

Thus, cryptocurrencies have become more likelya speculative class of assets for certain investors and those engaged in illegal activities, and not a means for making settlements, the group believes.

Since stablecoins are more convenient for paying and maintaining value, issuers must ensure compliance with the necessary rules.

Not a single global project to createstablecoins should not be launched until the legal, regulatory and supervisory problems and risks [...] are properly resolved with the help of appropriate designs and compliance with clear and proportional regulatory standards, ”said G7.

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.”