March 4, 2024

G7 believes stablecoins pose a threat to financial stability

G7 believes stablecoins pose a threat to financial stability

The Group of Seven countries has prepared a report that outlines the various risks associated with theIt also states that even if the Libra Association complies with theall the requirements of regulators, it will still not receive approval.

The G-7 believes that no one is stablea coin cannot be approved until all legal issues are resolved and all risks are resolved. However, taking these risks into account is not necessarily a guarantee of project approval.

G7 believes that global stable coins withthe potential for rapid scaling can jeopardize financial stability. The G7 report is expected to be presented to finance ministers at the International Monetary Fund's annual meeting this week.

Recall that regulators are concerned about the possible impact of the project on the economy and are trying to investigate all possible risks before making any decision.The Bank of England is drafting provisions that a draft must comply with before it can beThe U.S. has invited Mark Zuckerberg to testify before the U.S. House of Representatives Financial Services Committee later this month. 

In addition, four major partners left the project, and the Current startup initiated a lawsuit against Facebook, accusing the company of violating intellectual property rights in relation to the use of the Libra logo. 

Based on materialscointelegraph.com