Bitcoin and other cryptocurrencies have not become a “reliable and attractive” means of payment and savings, but stablecoins have potential. This is stated in the report of the “Big Seven” (G7).

g7 by BlockchainJournal on Scribd

The group, which includes the United States, Japan, Germany, France, the United Kingdom, Italy and Canada, has published a report on stable coins. The authors of the document recognized that global stablecoins, although not risk free, can solve the problem of slow and expensive money transfers.

At the same time, cryptocurrencies cannot serve as an effective solution, since they are “extremely unstable”, difficult to use, have limitations on scalability and problems with management and regulation.

“Thus, cryptocurrencies serve as a highly speculative asset class for certain investors and those engaged in illegal activities, rather than a means of payment, ” the report says.

On the other hand, stablecoins also do not yet have global regulation and may be unstable. But, subject to the rules, “stable coins” can be convenient for use as a means of payment and savings, experts say G7.

“No global stablecoin project should begin work until the legal, regulatory and supervisory problems are properly resolved, risks are mitigated through the implementation of appropriate designs and compliance with clear proportional regulatory standards,” the authors of the document emphasized.

Recall that the G7 already warned of a tough regulatory approach
Facebook's stable coin project Libra. Earlier, the group published a report on the risks to the stability of the global financial system, which are widespread stablecoins.

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