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G7 discuss regulatory needs for cryptocurrencies

Updated: Jul 25, 2024
Published: Dec 8, 2020
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U.S. Treasury Secretary Steven T. Mnuchin hosted an online event with central bank governors from G7 nations (US, Canada, France, Germany, Italy, Japan and the United Kingdom) yesterday. Also, in attendance were prominent representatives of the IMF, World Bank, Financial Stability Board and the European Commission.

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G7 Discuss Crypto

Alongside discussing the ongoing pandemic and the global strategy for economy recovery, the U.S. Department of the Treasury reported that the conversation touched upon the “evolving landscape of crypto assets and other digital assets and national authorities’ work to prevent their use for malign purposes and illicit activities.”

 

Regulatory Concerns

Most G7 nations have remained cautious on entering the cryptocurrency market due to regulatory and legal concerns. Some notable exceptions are Japan who recently formed a consortium of 30 banking and telecommunications companies to experiment on a nation-wide digital currency. Italy have also made strides in the field, announcing plans this year to begin trials for a digital Euro.

Transcript from the discussion revealed support for cryptocurrencies, but a sharp focus on ensuring that digital assets adhere to present regulatory framework before acceptance, as well as belief that they will integrate into the financial ecosystem and not replace it.

“There is strong support across the G7 on the need to regulate digital currencies.  Ministers and Governors reiterated support for the G7 joint statement on digital payments issued in October.”

 

Facebook’s Diem  

Unsurprisingly, Facebook’s cryptocurrency project Diem was victimised again as a great threat to centralised finance, officials keen to defame its character and fundamental value as a currency. Even after a visual rebrand and vision realignment announced last week, the project was still unable to shrug off the memories of its blundered 2019 launch and begin the journey to renewing its public image.

On Diem, German Finance Minister Olaf Scholz assessed that “a wolf in sheep’s clothing is still a wolf,” before continuing onto say that “we must do everything possible to make sure the currency monopoly remains in the hands of states.”

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