G20 asked IMF to study risks associated with stablecoins

The G20 said that stablecoins threaten the global monetary system and financial stability, and asked the IMF to assess the risks associated with them, reports Reuters .

G20 countries will develop stablecoins based on recommendations from the Financial Stability Board (SPS) and the Anti-Money Laundering Development Group (FATF), which will provide relevant conclusions in 2020.

“Until the risks associated with stablecoins are eliminated, they cannot be released ,” summed up the head of the Japanese central bank, Haruhiko Kuroda.

Alastair Pike / AFP / Getty Images Photo

He emphasized that emerging economies are already concerned about the potential of stablecoins with a huge user base, but not only they should be afraid.

German Finance Minister Olaf Scholz at the G20 meeting reiterated that the launch of Libra from Facebook must be stopped. He is confident that issuing money is the prerogative of states, not private companies.

The G20 recognized the strengths of the technology, but insisted that they were not going to ignore the threat of money laundering and the problems of protecting consumers.

Representatives of the G20 did not discuss the creation of digital currencies of central banks, which China is currently actively preparing.

Chinese digital currency – totalitarianism or a new monetary theory?

Recall that G7 believes that bitcoin and other cryptocurrencies have not become a “reliable and attractive” means of payment and savings. The group recognized the benefits of stablecoins, but urged not to launch such projects until legal issues are resolved.

The same position was expressed in the FATF, which previously published a guide for cryptocurrency service providers.

A game of cat and mouse with regulators, or what the new FATF recommendations mean for the bitcoin industry

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