Earlier this week it was read on several news outlets that according to a report from the G7 stablecoins like Facebooks Libra pose a threat to the global financial system. That report, which at the time was only in the hands of the BBC, has now been officially released.
The report states that such stablecoins should not enter into force until all relevant legal and supervisory risks have been addressed and even then there is no guarantee that they will be approved. In the released report you can read the following:
The G7 believes that no worldwide stablecoin project should start until the legal, regulatory and supervisory challenges and risks described above have been adequately addressed through appropriate designs and by adhering to clear and proportionate regulations.
According to the report, these risks include money laundering, terrorist financing, tax evasion, privacy, data protection, market integrity, financial stability, and the global financial system.
However, the report also states that stablecoins can be a fast, reliable and inexpensive method for both domestic and cross-border payments and that they are attractive as a means of potting.
Germans do not want Libra
In related news, Cointelegraph Germany reports that almost 75% of the 2000 Germans surveyed above 16 refuse to use Facebooks Libra.
The survey, conducted by Wirtschaftswoche and Creditplus Bank AG, states that only 27% of the consumers interviewed would use Libra as a payment method. 42% say they refuse Libra because they don’t trust Facebook, 31% say they only have faith in government-issued currencies.
The older, the greater the chance that people will refuse to use Libra according to the research. Among the over-55s, 85% indicated that they were unable or unwilling to do anything with Libra, while in the age group between 22 and 34, 42% of those surveyed were open to Libra.
Companies such as Visa, Mastercard, and eBay recently announced that they had left the Libra project. PayPal already announced that shortly before. Mark Zuckerberg, CEO of Facebook, appears on October 23 for the US Congress on Libra.
Bermuda recently announced it is working with Circle to pay tax on Bermuda with the stablecoin USD Coin (USDC).