The BBC reported yesterday citing a report published by the G7 that the organization believes stablecoins such as Libra pose a threat to global financial stability.
According to the document:
"No stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed. Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement."
According to the G7, stablecoins with great scalability potential could negatively affect global financial stability if users lose confidence in the coin.
The report will be presented this week during a meeting of the International Monetary Fund (IMF).
This document has been released just a few weeks after the finance ministers of France and Germany claim their countries will ban the development of Facebook's stablecoin in their countries.
The G7 established in June, right after the official announcement of Libra, a task force focused on stablecoin projects.
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