G7 financial regulators will announce on Tuesday their disagreement with the launch of Facebook’s Libra until the project is properly regulated, Reuters has learned, citing draft of G7 statement.
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While digital payments could improve access to financial services and cut costs, such services should be "appropriately supervised and regulated" in order not to damage financial stability, the draft states.
"The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards," the draft says.
Facebook's well known stablecoin-focused project is experiencing an active reorganization as its Co-Founder Morgan Beller recently left the company.
Despite her departure, Beller assured she will be involved in Libra's development "at some capacity" as an advisor.
Libra has been on the bumpy road over the last couple of years as the project was consistently under the pressure not only from Capitol Hill, but also from international watchdogs and financial institutions.
In February 2020, Mastercard CEO, Ajay Banga, told the Financial Times that the giant payment processor decided to quit the Libra Association due to the absence of a clear answer on whether the social network would integrate the KYC due diligence, fight with money laundering, store users' data or not into the project.
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