- A G7 taskforce has been created by France following the launch of the Libra protocol
- According to the French central bank governor, certain aspects of stablecoins have not been well defined
When Facebook released their Libra Whitepaper this week, many in the crypto community were excited because it could spell a new era of widespread crypto adoption around the globe as Facebook is one of the most powerful and influential companies in the world. However, another discussion came up that focused on what the token could mean for the global economy and this did not go unnoticed by various world powers as Facebook has been summoned to the US Senate as well as scheduled various talks with world leaders, some of whom are uncertain about the implications. Now it has been reported on June 21 that France has begun the creation of a G7 task force which will be given the responsibility to examine how central banks can better regulate cryptocurrencies in the wake of this news.
France does not trust Facebook
The Central Bank governor of France, Francois Villeroy de Galhau, stated that the task force will be led by Benoit Coeure, who is a European Central Bank board member. According to him, France’s issue is not with the token being created but that they are adamant that it does not become a sovereign currency onto itself as they would be great implications for the financial system
“We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest,” Villeroy told finance industry officials.
Stablecoins hard to fit into current regulations
He also mentioned that the concept of a stable cryptocurrency has not been fully defined and in particular, what instruments they are stable against and how interest rates are to be fixed. These details are yet to be fully determined and Villeroy has also called for a network of anti-money laundering authorities across the globe coordinated by the European banking authority to carry out various measures and even substitute for National authorities rather than creating specialized European agencies.
Facebook has anticipated these challenges before the launch of the Libra protocol as they have hired a lobbyist from Standard Chartered Bank in the UK and have also met with the governor of the Bank of England to discuss regulatory policies moving forward. Because Facebook’s 2 billion users stretch across the globe, they will have to contend with economic policies across a number of countries.