The G7 refers to the seven wealthiest nations in the world. The financial leaders of these countries recently gathered for their annual meeting. They met in France this year. Once of the main topics on the table was the emergence of cryptocurrency. More specifically, the development of a cryptocurrency called Libra by the social media giant Facebook. People who work for Facebook have been questioned by members of the United States Congress this week about the specific details surrounding the release of Libra next year. The financial leaders of the G7 are definitely concerned about the impact that Libra could have on the global economy.
The concerns of the G7 nations about Libra were all the same. They are afraid that Libra will be used for highly illegal purposes. For example, it is the perfect way for people to finance the activities of terrorist groups because of its anonymous nature. That also do not want people to start using Libra as a way for them to avoid paying their fair share of taxes. Therefore, the financial leaders of the G7 nations are pushing for Libra to be very closely regulated. They want to ensure that no criminal activities are performed with Libra like has been the case with many of the other previous cryptocurrencies.
It was a consensus of the G7 participants that much more specific info about Facebook’s Libra will need to be revealed and analyzed before the social media company will be given regulatory approval. There is also a fear that criminals might attempt to use Libra to launder money. This is also something that has been done with Bitcoin on a regular basis. However, the greatest concern is that Libra might jeopardize the stability of the global financial system as a whole. This is due to the fact that Facebook has over two billion users. Therefore, people might start to use Libra instead of their national currency.
There has been no firm date given for the release of Facebook’s Libra as of yet. However, the company wants it to be at some point in 2020. Needless to say, there are many legal and regulatory hurdles that the social media giant must be able to navigate before their new cryptocurrency will be legally allowed to be traded around the world. The financial leaders of the world are taking a close look at the situation and will continue to do so.