G7 officially released a stable currency report, saying that Libra and other stable coins need to solve the relevant risks to start

The Stabilization Coordination Task Force of the Group of Seven (G7) released a report saying that stable currencies such as Facebook Libra pose huge risks to the global financial system, but they also have great potential in the payment field.

On October 18, in a report requested by the G7 Finance Minister and the central bank governor, the G7 Stabilization Coin Working Group confirmed that the G7 will not allow any global stable currency program if the relevant challenges and risks are not adequately addressed. start up.

The report mentions:

• The cryptocurrency exchange "closed tide", running to catch up with P2P
• Bank of Canada considers launching central bank digital currency to deal with cryptocurrency threats
• Technical exploration of cross-chain DEX prototypes: How to trade cross-chain assets within a single DEX?

Stabilized coins have many characteristics of crypto assets, but they attempt to stabilize their prices by linking the value of the "coin" to the value of the pool of assets. Therefore, stable currencies may be more capable as a means of payment and a means of value storage that may help to develop a global payment system that is faster, cheaper and more inclusive than existing systems. That is to say, stable coins are just one of many initiatives aimed at solving the existing challenges in payment systems, and as emerging technologies, they are mostly untested.

However, these potential benefits can only be realized if significant risks are addressed. Stabilizing coins, regardless of their size, pose legal, regulatory and supervisory challenges and risks, which involve:

1. Legal certainty;
2. Sound governance, including investment rules for stability mechanisms;
3. Money laundering, financing of terrorism and other forms of illegal financing;
4. The security, efficiency and integrity of the payment system;
5. Network security and operational recovery capabilities;
6. Market integrity;
7. Data privacy, protection and portability;
8. Consumer/investor protection;
9. Tax compliance;

In addition, achieving a globally stable currency may pose challenges and risks to:

1. Monetary Policy;
2. Financial stability;
3. International monetary system;
4. fair competition

In addition, the report also emphasizes that:

“The Group of Seven believes that any global stabilization currency project should not begin to function until it is adequately addressed through appropriate design and compliance with clear and risk-appropriate regulations to address the above legal, regulatory and supervisory challenges and risks. The unique design and details of each stable currency, approval may depend on additional regulatory requirements and compliance with core public policy objectives."

It is worth noting that the report also provides initial recommendations for the stabilization of private sector developers and the public sector to address challenges and risks.

View the full G7 Stabilizer Report, available at:

Https://www.chainnode.com/doc/3908

Attached: List of G7 Stabilizing Coins Working Group

Benoît Cœuré Chairman of the Stabilization Coin Working Group

Canada: Central Bank of Canada (Carolyn Wilkins, Tim Lane, Scott Hendry), Ministry of Finance (Rob Stewart, Leah Anderson, Julien Brazeau)

EU: Hans Vijlbrief, Florian Abadie European Central Bank (Sabine Lautenschläger, Klaus Löber, Dirk Bullmann) European Commission (John Berrigan, Florian Denis, Jon Isaksen)

France: Bank of France (Sylvie Goulard, Nathalie Aufauvre, Valerie Fasquelle, Marie-Hélène Ferrer) French Ministry of Economy and Finance (Odile Renaud-Basso, Sébastien Raspiller, Arnaud Delaunay)

Germany: Central Bank of Germany (Claudia Buch, Benjamin Weigert, Melanie Wulff) Ministry of Finance (Jakob von Weizsäcker, Stefan Mai, Markus Neimke)

Italy: Bank of Italy (Fabio Panetta, Riccardo Cristadoro, Paola Giucca) Ministry of Economy and Finance (Alessandro Rivera, Stefano Cappiello)

Japan: Bank of Japan (Shinichi Uchida, Norio Hida, Masaki Bessho, Takeshi Yamada) Ministry of Finance (Yoshiki Takeuchi, Takefumi Yamazaki, Yuta Takanashi)

United Kingdom: Bank of England (Jon Cunliffe, Tom Mutton, Ben Dyson) Treasury (Veda Poon, Gillian Dorner, William Bennett)

United States: Federal Reserve Board (Steven Kamin, David Mills, Brett Berger) Treasury (Geoffrey Okamoto, Sharon Yang, Daniel Greenland)

International Monetary Fund (Tobias Adrian, Gita Gopinath, Tommaso Mancini-Griffoli, Soledad Martínez-Pería)

Bank for International Settlements (Observer) (Hyun Song Shin, Leonardo Gambacorta, Jon Frost)

Financial Stability Board (observer) (Dietrich Domanski, Jon Frost, Alexandre Stervinou)

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