The Libra effect continues, and the G7 Group in developed economies has established a cryptocurrency working group.

Facebook’s recently launched Libra cryptocurrency raises regulatory issues, and France is working on a special working group within the G7 Group (members including the US, UK, Germany, France, Japan, Italy and Canada) to study these issues.

Libra

According to a Reuters report on Friday, French central bank governor Francois Villeroy de Galhau said the cryptocurrency working group will be headed by ECB board member Benoit Coeure and will study how to regulate cryptocurrencies to avoid money laundering and other problems.

Villeroy said:

"We want to combine open innovation with strict regulation. This is in everyone's interest."

On Tuesday, French Finance Minister Bruno Le Maire expressed concern that Libra might replace the traditional currency and called on the G7 central bank governor to prepare a report on the Facebook project for the July meeting.

Le Maire said at the time that Libra could not be allowed to “become a sovereign currency”. “This is something that cannot and should not happen.”

Facebook first announced the details of the Libra project on June 18 and released a white paper announcing that it has established a subsidiary, Calibra, and an independent organization, the Libra Association, to develop and manage the cryptocurrency.

The company's partners are 28 partners including Mastercard, PayPal and Uber. There are currently no banks to join.

Libra will be a stable currency linked to a basket of fiat currencies and government-backed securities that will initially be used for fund transfers on a global scale. Ultimately, the project will create a financial services ecosystem.

Villeroy also said that the concept of stable currency still needs to be defined by regulators.

Since Libra's listing, other regulators, including the US and the UK, have also talked about regulatory issues that the project may face.

The US Senate Banking, Housing and Urban Affairs Committee will hold a hearing on Libra's questions on July 16.

German European Parliament member Markus Ferber also called for a review of virtual currency. He said, "When introducing virtual currency, companies must not be allowed to go beyond supervision."

The G7 is the richest developed economy defined by the International Monetary Fund and is currently chaired by France.

From a regulatory point of view, regardless of whether Libra can succeed in the end, it has promoted the legalization of global cryptocurrency to a certain extent.