G7 favours regulating digital currencies

G7 favours regulating digital currencies

Brussels (Brussels Morning) Representatives of central banks and finance ministers from the G7 stress the importance of regulating digital currencies, according to a US Department of the Treasury statement released yesterday, Monday, after the virtual G7 meeting, Reuters reports.

The Department of the Treasury notes that the finance officials talked about cryptocurrencies and other digital assets as well as efforts by national authorities to prevent the use of such assets for malevolent purposes and illegal activities. The G7 strongly supports the idea that digital currencies must be regulated, the statement said.

Besides discussing regulation and oversight of digital assets, participants at the G7 meeting discussed national and international economic responses to the coronavirus pandemic and ways to achieve a strong global recovery from the crisis.

Scholz’s criticism

After the meeting, Germany’s Minister of Finance Olaf Scholz criticised US tech giant Facebook’s cryptocurrency, recently renamed Diem from Libra, and said that neither Germany nor the EU should authorise its launch. It will take more than a new name for Facebook’s planned cryptocurrency to ease the concerns of regulators, he asserted.

“A wolf in sheep’s clothing is still a wolf,” Scholz warned, adding that Germany and the EU “cannot and will not accept its entry into the market while the regulatory risks are not adequately addressed.” It was essential that everything possible be done to prevent the curren