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Treasury: G7 finance officials back need to regulate digital currencies

According to the U.S. Treasury Department statement on Monday, Finance ministers and central bankers from the Group of Seven (G7) advanced economies strongly supported the need to regulate digital currencies.

According to reuters, German Finance Minister Olaf Scholz issued a sharply worded statement after the meeting, underscoring his concerns about authorizing the launch of Facebook’s Libra cryptocurrency, newly renamed Diem, in Germany and Europe.

He stated:

“A wolf in sheep’s clothing is still a wolf. It is clear to me that Germany and Europe cannot and will not accept its entry into the market while the regulatory risks are not adequately addressed.”

He also added:

“We must do everything possible to make sure the currency monopoly remains in the hands of states.”

U.S. Treasury Secretary Steven Mnuchin hosted the 12th meeting of the G7 finance officials during the current year related to the COVID-19 pandemic as Washington prepares to hand over the presidency of the G7 to Britain for the next month.

Treasury said that the G7 finance officials discussed ongoing responses to “the evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities.”

According to the statement “There is strong support across the G7 on the need to regulate digital currencies.”

Stablecoins are tied to a traditional currency or basket of assets, and used for payments or for storing value.

In June, Facebook announced plans to launch its digital currency but regulators all over the world fear it could destabilise the global financial system.

The statement also noted that G7 finance officials also discussed domestic and international economic responses to the COVID-19 pandemic, and strategies to achieve a robust global recovery.

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