This article comes fromBitcoin.com, original author: Kevin Helm
Odaily Translator |
This week, the finance ministers of the Group of Seven (G7), which is composed of the United States, the United Kingdom, Germany, France, Japan, Italy and Canada, held a meeting, and Libra, the digital currency just launched by Facebook, became the focus of discussion in this G7. . During the two-day meeting, they have reached a consensus on several initiatives and rapid supervision of digital currency projects such as Libra, and demand the highest financial regulatory standards. Next, let Mr. Odaily (WeChat: o-daily) take everyone to see what resolutions were made on Libra at the current G7 Finance Ministers and Central Bank Governors Meeting.
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call for urgent action
Finance ministers and central bank governors of the Group of Seven countries held a two-day meeting on July 17 and 18 in Chantilly, north of Paris. France is this year's rotating presidency. A summary of the resolutions made by Libra and an agreement to act on the issues it raises.
The summary of the resolution mentions:
“The G7 finance ministers and central bank governors acknowledged that while innovations in the financial sector can bring substantial benefits, they can also pose risks. They therefore agreed that stablecoins and a variety of other new products currently under development, including Projects such as Libra, which are global and systemic, raise serious regulatory and systemic and wider policy issues that need to be addressed before such projects can be implemented."
On regulatory issues, G7 finance ministers and central bank governors agreed on the possibility of "more robust" regulation and called for the highest standards of financial regulation. The rotating presidency of France wrote in the summary of the resolution:
“With regard to systemic issues, G7 finance ministers and central bank governors all believe that projects such as Libra may affect monetary sovereignty and the operation of the international monetary system.”
Above: G7 finance ministers and central bank governors meet in Chantilly, France.
French Finance Minister Bruno Le Maire (pictured below) told Reuters in an interview:
“For Libra, we had very constructive and detailed discussions and reached a very large consensus on necessary action. National sovereignty cannot be compromised. ….The general sentiment at this meeting was that Libra needs to be urgently acted on .”
German Finance Minister Olaf Scholz said that currency issuance does not belong to private companies, because it is a core issue of a sovereign state. He believes that Facebook's plan to launch a digital currency does not seem to have been fully considered, and also believes that the project cannot continue without all legal and regulatory issues being resolved.
"Most G7 members agree that Libra is a serious concern from the standpoint of consumer data protection and monetary policy implications."
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Global Coordination and G7 Working Groups
Facebook recently announced the Calibra digital wallet plan. As a subsidiary of Facebook, Calibra will be responsible for providing financial services for the Libra network, and a digital wallet supporting Libra will also be launched later.
In response to this series of changes, the G7 has established a stablecoin working group headed by Benoit Coeure, chairman of the Committee on Payments and Market Infrastructures (Committee on Payments and Market Infrastructures). The members of the working group are mainly from the G7. Senior officials of central banks, the International Monetary Fund (IMF), the Bank for International Settlements and the Financial Stability Board (FSB). According to the summary of the meeting released by Benoit Coeure, the Stablecoin Working Group will subsequently join the ministries of finance of various countries and will also coordinate with the Group of Twenty (G20) and other relevant standard-setting bodies. Additionally, the G7 Stablecoin Working Group is expected to release a final report and recommendations ahead of the IMF-World Bank annual meeting in October.
Above: Benoit Coeure, Chairman of the Payments and Market Infrastructures Committee
Bank of Japan Governor Haruhiko Kuroda believes that given Libra’s potential impact on the global economy, the G7 Stablecoin Working Group will also evolve over time, including attracting more regulators, elaborating that :
The G7 central bankers also said that if Facebook wanted to get involved in the deposit business, it would have to get a banking license because anonymous transactions always worry regulators.
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Japan forms its own encryption working group
According to a Reuters report, Japanese sources have revealed that they will set up a regulatory plan for Facebook's digital currency Libra, and they have set up a domestic working group before the G7 finance ministers and central bank governors meeting to study Libra. Potential implications for monetary policy and financial regulation. The working group, made up of officials from the Bank of Japan and Japan’s Financial Services Agency (FSA), which oversees the country’s banks, has begun comprehensive discussions on various aspects of stablecoins.
According to Japan's "Mainichi" (Mainichi) report, the current Japanese Finance Minister Taro Aso said after the G7 meeting that the Japanese Digital Currency Working Group will seek to coordinate policies to address Libra's possible impact on regulation, monetary policy, and taxation. and payment settlements, he explained:
As the host country of this year's G20 summit, Japan will study how to coordinate the work between the G7 and G20 to jointly assess and resolve Libra's policy impact. At the G20 summit last month, G20 leaders declared that crypto assets do not currently pose a threat to global financial stability, but they are closely monitoring developments and remain vigilant about existing and emerging risks . In addition, leaders have asked the Financial Stability Board (FSB) and other standard-setting bodies to respond as the market demands.
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Japan wants to build a global encrypted payment network
To combat money laundering, the Japanese government is building an international network for cryptocurrency payments, similar to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network used by traditional banks, people familiar with the matter told Reuters. The Japanese Ministry of Finance and the Japan Financial Services Agency plan to complete the construction of this network in the next few years. The Financial Action Task Force (FATF), an intergovernmental standard-setting body in the field of anti-money laundering that will oversee the development of the system, actually approved Japan's plan to establish an international network for cryptocurrency payments in June this year.
“Assessing existing regulations may not be enough, a comprehensive examination is required to see whether Libra may involve some issues that are not considered by existing regulations. On the other hand, regulatory authorities need to respond in a timely manner so as not to fall behind these new regulations. technology."
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Will U.S. lawmakers "kill" Libra first?
This week, Calibra CEO David Marcus, head of Facebook's cryptocurrency project, appeared before the U.S. Senate Banking Committee and the House Financial Services Committee to answer questions such as how Libra will affect global monetary policy and how to protect customer data.
The problem is, US lawmakers don't trust Facebook.
Senator Sherrod Brown, in his opening remarks, said bluntly that Facebook is no longer trustworthy in the wake of the data privacy scandal, making it difficult for U.S. lawmakers to give them the opportunity to experiment with people's bank accounts.
Representative Brad Sherman's attitude was more straightforward. He didn't ask any questions, and directly stated:
"Nobody is going to call this thing Libra, people are going to call it ZuckBucks. So we need Mark Zuckerberg to sit here, Libra is as damaging to America as 9/11 is to drug dealers, sanctions evaders, and other criminals , Libra is definitely a godsend. The power of the United States comes from the US dollar, which is even stronger than the US military. Libra can't solve the problem of cross-border remittances, and it can't solve the problem of people without bank accounts. If Libra is used for terrorist attacks, 100 No lawyer can save Zuckerberg, he waits to be tried by the American people, I don't ask any questions."
Above: Calibra CEO David Marcus
Rep. Andy Barr hopes Facebook can clarify that Libra will not undermine sovereign currencies and central banks, nor will it provide greater freedom to keep people away from central banks.
David Marcus's answer seems to be able to sum up this article, he said:
