France to Launch G7 Cryptocurrency Task Force in Wake of Libra Concerns
According to a report published by Reuters on June 21, 2019, France is set to form a G7 cryptocurrency task force to explore how global central banks can regulate cryptocurrencies like Facebook’s Libra without the risk of it being used for money laundering and other illicit activities.
A Crypto-Focused G7 Task Force
Libra, the latest buzzword in the already noisy crypto space has caused quite the stir among regulatory bodies the world over.
The latest reaction to Facebook’s infant cryptocurrency comes from France which is now readying itself to create a G7 task force to study better measures to regulate the supposed “global cryptocurrency.”
On June 21, France’s central bank’s Governor, Francois Villeroy de Galhau said the task force would be spearheaded by European Central Bank board member, Benoit Coeure. Notably, France currently holds the rotating presidency of the G7 nations.
The European country said that while it does not oppose Facebook creating an instrument for financial transactions, it does, however, is not on board with the idea of that instrument becoming a sovereign currency.
Villeroy told finance industry officials:
“We want to combine being open to innovation with firmness on regulation. This is in everyone’s interest.”
Libra Generates Waves of Cautionary Reactions
Earlier this week, the California-based tech juggernaut announced a slew of features and use-cases for Libra that could potentially pit it against any sovereign currency. Dubbed “a global cryptocurrency,” Libra is the cornerstone of Facebook’s ambitious plans to tap into the rapidly expanding digital payments space.
However, the embryonic cryptocurrency has already run into multiple regulatory troubles in less than a week after its launch.
BTCManager reported on June 20, 2019, how Libra might not see the day of light in India due to the country’s strict anti-crypto regulations. This is particularly interesting as an earlier report posited that India could be the first country where Facebook would test its digital token.
Things aren’t particularly encouraging back in the U.S. either, as recently the United States Senate Banking Committee announced a July 16, 2019, hearing date for Facebook’s Libra cryptocurrency project.
It remains to be seen how Facebook tackles the incoming regulatory assaults on its only crypto offering to date.