Cryptocurrencies again come under the scrutiny of politicians from G7 countries. Finance ministers and central bankers want to regulate this market.
The G7 countries deal with digital currencies
As the U.S. Treasury Department has just announced, G7 finance ministers and central bank governors – the United States, Canada, France, Germany, Italy, Japan and the United Kingdom to be precise – have expressed their strong support for the need to regulate the cryptocurrency market and other digital assets. Initial decisions on this matter were made during the 12th G7 summit.
As reported in the news, politicians “They also discussed the current responses to the changing landscape of crypto and other digital assets, and the work of national authorities to prevent them from being misused for malicious purposes and illegal activities. There is strong support in the G7 for the need to regulate digital currencies.
It turns out, however, that politicians are primarily interested in digital currencies linked to physical assets and fiat currencies – stablecoins.
Regulators want to regulate the stablecoin market first. At a meeting in October, the G7 even released a draft report that stated that digital assets that are linked to fiat currencies need to be carefully scrutinized and regulated:
“The G7 believes that no stablecoin project should begin until legal, regulatory and supervisory challenges and risks are properly addressed. Addressing such risks does not necessarily guarantee regulatory approval of the stablecoin agreement. ‘
This is probably a reaction to Facebook’s preparations for the Diem issue. The digital currency of the social networking site is expected to appear on the market at the beginning of 2021. We heard about it for the first time in summer 2019, but then the company’s ideas aroused great opposition from officials around the world. They recognized that Facebook’s digital currency is a threat to fiat currencies.
The same report also notes the potential of cryptocurrencies to offer consumers better financial services and the fact that they allow 1.7 billion people worldwide to access funds transfer despite the fact that they do not have a bank account.