June 24, 2019, | AtoZ Markets - Francois Villeroy de Galhau, the Governor of Bank of France, has revealed that France plans to form a new task force from G7 member countries. The main purpose of the G7 crypto task force to examine regulatory issues related to cryptos. The crypto community suggests, that the main reason pushing France into this initiative is growing concerns around soon to be launched Facebook Libra stablecoin.
About G7 crypto task force in a brief
As media reports, the new division will monitor how central banks ensure digital assets like Facebook Libra stablecoin is governed by regulations ranging from money-laundering laws to consumer-protection rules. While speaking about “stablecoin” term, Villeroy de Galhau, an outspoken critic of bitcoin, noted, the concept of “stable” crypto still needs to be defined.
The G7 crypto task force will be led by French economist and European Central Bank board member Benoit Coeure.
Francois Villeroy de Galhau reportedly told officials in the finance industry, “We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.”
As media reports, Villeroy also called for a network of national anti-money-laundering authorities, coordinated by the European Banking Authority, to carry out emergency measures.
In April 2019, The French parliament approved a new financial bill, which also included regulating some parts of the industry of cryptocurrency. France became the first major country to adopt such kind of regulations.
G7 crypto task force to halt Facebook Libra expansion
Notable, the G7 crypto task force announcement comes just a few days after the US and EU regulatory departments expressed their concerns about the new digital asset launch on the social media giant’s platform. The national lawmakers have already expressed their opinion on the soon to be launch Facebook GlobalCoin/Libra Coin.
While speaking about their concerns about the new coin, the U.S. lawmakers pointed on Facebook's attitude towards its users' personal data protection.
The chairman of the House Financial Services Committee Maxine Waters noted that social media giant has data on billions of people and has repeatedly shown incompetence in the protection and careful use of its users’ data. Eventually, the leading U.S.
House lawmaker asked the social media giant to pause Facebook Libra cryptocurrency project and testify before Congress answering to global concerns about the crypto impact on data privacy and security.
Certain European supervisors expressed their skepticism of Facebook Libra stablecoin positive impact on the market. For example, the French Finance Minister Bruno Le Maire does not believe Facebook GlobaCoin to comply with strict money-laundering and anti-terrorism finance rules. Although the French officials allude they are not in opposition to Facebook Libra coin, they insisted on regulatory compliance.
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