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, Author: Heiye, released with permission.

The Libra Association welcomes dialogue with and is subject to review by the G7 Working Group. The G7 report focuses on a framework that will allow Libra to operate effectively, which is an evolving vision. We welcome the opportunity to continue to engage and look to policymakers to give regulators the time and space to continue to develop appropriate regulations.

• The Libra Association is pleased that the G7 Working Group released the report "Investigating the Impact of Global Stablecoins" (Investigating the Impact of Global Stablecoins), which shows that they have realized the great potential of fast, secure, and low-cost payment technologies.

• The Libra Association is committed to creating a system designed to replace, or even exceed, current standards of consumer protection, financial stability, and global cooperation to prevent money laundering while maintaining national sovereignty over monetary policy. Libra's distributed governance is designed to give consumers more choice, more access, greater interoperability, and lower prices.

• Libra Libra is committed to working with regulators to provide the same strong legal protections as fiat currencies.

• Libra is designed to respect the country's monetary sovereignty over the digital currency industry, not to undermine the country's monetary sovereignty

Considering the importance of the stability of the global financial system and the sovereignty of countries over monetary policy, Libra aims to cooperate with existing regulators and apply the protection they provide to the digital domain, rather than subverting or disrupting financial system issues and structuring currencies sovereignty.

In response to the G7 report, the Libra Association and its members hope to address issues in some key areas:

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• The purpose of establishing the Libra Association is to help more people realize the long-term potential of Internet technology, help one billion people improve financial services, and reduce the cost of access to services.

The G7 report affirmed that stablecoins such as Libra are the future of digital currency innovation, because these stablecoins eliminate currency volatility and improve payment security, speed and reliability. Libra can co-exist with a national digital currency issued by the central bank, an area China has successfully innovated in with a dedicated mobile network.

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• The Libra network is open, allowing competition among service providers running on the system.

We hope that the open-source nature of the Libra project will inspire a global ecosystem of startups, institutions, fintech developers, and financial services companies on the Libra blockchain to innovate responsibly. Banks, financial institutions and startups can use and accept Libra for free, and can apply to join the Libra Association. Through partnerships with banks, responsible financial institutions, Libra can provide financial services to the unbanked.

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• The Libra Association agrees with the G7 Working Group to prioritize AML, KYC compliance, and taxation, and we reiterate that the Libra Association will set appropriate AML, KYC, and anti-fraud policies for Association members standards to ensure reassurance for regulators and public stakeholders.

The Libra Association has repeatedly stated that it will set standards for member institutions to maintain anti-money laundering/"know your customer" and anti-fraud requirements, and combat terrorist financing and other forms of entry crimes. The Libra Association will also cooperate with law enforcement investigations. In addition, Libra has realized that much of the work to check for illegal activity will be appropriately performed on the service provider side, so that historical transactions on the Libra blockchain can be analyzed and information about potentially suspicious activity can be shared with law enforcement agencies. Individuals and entities holding Libra tokens will be responsible for filing taxes according to local laws, and we hope that wallets and financial services based on the Libra blockchain will provide consumers with the tools to manage their tax returns.

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• Libra token holders will enjoy protections and legal rights similar to current financial product protections and legal rights.

While Libra will not give people the legal right to purchase tokens from the Libra Association, authorized resellers will have this contractual right. By supporting a competitive marketplace, authorized resellers will enable consumers to efficiently switch between Libra and other currencies.

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• The Libra payment system and Libra tokens are not designed to replace the U.S. dollar or any other currency, but to expand the functionality of these currencies by enabling cheap and fast payments, and Libra will not weaken the sovereignty of governments to implement monetary policy.

Libra is not intended to change the role and influence of central banks in the global financial system. Wallets and other financial services (including exchanges and other on- and off-ramps) running on the Libra network will have to comply with regulations, such as local capital controls, which in turn will allow central banks to adjust adequately to prevent high volumes of national currencies in emerging markets Convert to Libra tokens. The fiat currencies in the Libra reserve will be subject to the monetary policies of their respective governments, and each Libra token will be fully backed in the form of bank deposits and cash equivalents, as well as short-term government securities, which will mitigate the risk of "bank runs" because Libra tokens are fully backed one-to-one by cash and other liquid assets, rather than by a small percentage of reserves like bank deposits. The Libra Association will also build strong network security requirements for node operators and implement protocols designed to ensure the normal operation of the network, even if some validator nodes are compromised, the network will not be affected, ensuring the flexibility of the payment network.

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• The Libra Association is committed to protecting the data privacy of its users and will ensure that data protection laws, including the GDPR, are applied to Libra activities.

Only public wallet addresses and the amount of Libra tokens transferred will be collected, stored and processed on the Libra Blockchain. Members of the Libra Association who are node validators will not be able to access, use or share personal data about end users of the Libra Blockchain. Companies that interact directly with customers, such as wallet services and exchanges, will comply with data protection laws, including data portability.

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• Unlike some other payment networks, Libra will operate transparently and in cooperation with regulators.

Through partnerships with the public and private sectors, the Libra Association has developed many of the latest technological infrastructure systems, including the Internet itself and its domain name system. The Libra Association looks forward to working with public institutions (such as central banks, etc.) to build related systems.

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• Opportunities to improve cross-border payments

The Libra Association works to expand financial inclusion, economic empowerment, and access to the global economy for billions of people and small businesses.