The financial leaders of the G20 countries have expressed concern about global stablecoins, which “carry risks for public administration and regulation.”
This Friday, the financial leaders of the G20 member countries concluded an agreement according to which strict rules are set for global stablecoins, such as Libra, until various macroeconomic risks are eliminated.
Ministers of finance and heads of central banks asked the International Monetary Fund to study the economic consequences of the spread of stablecoins, including the monetary sovereignty of the G20 member countries. A statement released after the meeting said:
“Such risks, including those related to money laundering, illegal financing, as well as the protection of the rights of consumers and investors, must be assessed and duly taken into account before such projects begin to operate.”
Haruhiko Kuroda, head of the Bank of Japan, said the discussion on stablecoin regulation will be based on proposals from standard-setting organizations such as the Financial Stability Board (FSB) and the Financial Action Task Force on Money Laundering (FATF).
The FSB and FATF are expected to report their findings to the G20 next year. This reduces the likelihood that Facebook will be able to launch the stablecoin Libra in 2020. At a press conference organized by Japan, Kuroda said:
“Politicians have expressed concern about the various risks that stable coins carry. Until these risks are eliminated, stable coins should not be distributed. This decision has been agreed by all G20 members. ”
In addition, at a meeting of the IMF and the World Bank last week in Washington, Kuroda said:
“Some developing countries are worried about what could happen if stable coins are widely used around the world. But the problem exists not only for developing countries. It can also affect monetary policy and the stability of the global financial system. ”
Recall that earlier this month the G7 working group announced that the launch of global stablecoins could threaten the stability of the global financial system, and the FATF president expressed the view that stablecoins could interfere with the prevention of criminal activity.
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