Facebook’s Libra is Ruining it for All Stablecoins, New G7 Report Proves

Facebook’s Libra is Ruining it for All Stablecoins, New G7 Report Proves
фото показано с : beincrypto.com

2019-10-15 06:18

Not exactly unfamiliar with recurring setbacks, Libra, Facebook’s maiden venture into the cryptocurrency space seems to have hit yet another roadblock. In fact, the repercussions from this new setback could be even existential — or so it seems if we go by the content of a new G7 report, as seen by BBC.

The report, which is not yet officially available in the public domain, allegedly suggests that Libra may not get the final approval in G7 countries even if the Libra Association manages to address all regulatory concerns.

And it gets even worse — just like many in the broader community had suspected earlier, the never-ending controversies surrounding Libra is now taking a toll on other similar digital assets as well.

The Threat Perception is Beyond Regulatory Concerns

Apparently, the report outlined nine major threats posed by Libra, and also other stablecoins in general. They zoomed in on the suspicion that digital stablecoins could seriously destabilize the global financial order if not nipped in the bud in time.

To that effect, it should perhaps be taken more seriously by the broader community including those critical of Libra.

That being said, there is hardly any doubt that Libra was at the focal point of the report considering that it has reportedly drawn similar allegations in the past as well, especially from countries such as France and Germany, as BeInCrypto has earlier reported.

The report was prepared by a special G7 taskforce comprising representatives from the International Monetary Fund (IMF), central banks, and the Financial Stability Board, an international body tasked with monitoring the global financial system.

More Clarity Expected Later This Week

Considering the potential implications, the only solace Facebook could find as of now is that the report is only in the draft phase at present and is likely to go modifications. That leaves the social media giant some time to perhaps lobby hard for blocking some of the problematic clauses in the report.

However, the clock is ticking even on that front as the final draft will be sent to all finance ministers attending the IMF annual meeting later this week.

As for other stablecoins in circulation, they might as well expect more rigorous scrutiny moving forward — all thanks to Libra.

The G7 task force pointed out:

“The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed”.

Holding Against Volatility

Stablecoins, by definition, are relatively stable in the sense that they are not as susceptible to volatility as say, Bitcoin or other cryptocurrencies are. However, the G7 task force believes that in the event there should be a wild swing in their valuation, stablecoins will end up denting the economy and financial stability.

The report also mentioned — presumably in an indirect reference to the repeated assurances given by the Libra Association — that “addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement.”

Meanwhile, amidst all these regulatory uncertainties, the Libra Association is losing one key member after another. Barely days after PayPal distanced itself from the project, more founding partners including eBay, MasterCard, and Visa, officially dumped Libra late last week.

Do you think Libra is now staring at an existential crisis? How do you see the market reacting if any such scenario — however unlikely — emerges over the next few days? Share your predictions in the comments below.

Images are courtesy of Shutterstock.

The post Facebook’s Libra is Ruining it for All Stablecoins, New G7 Report Proves appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Time New Bank (TNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.01 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.002809 (-100%)

report new facebook libra seems proves ruining

report new → Результатов: 126


Фото:

A New EU Report Suggests Banks Could Indulge in Financial Misconduct to Stay Away From Cryptos

A new report from an EU department shows that all is not well in the fintech sector as competition intensifies between traditional finance and crypto finance. The report prepared by the Police Department for Economic, Scientific, and Quality of Life Policies on the recommendation of the European Parliament Committee on Economic and Monetary Affairs (ECON).

2018-7-23 17:19


Coindar Online Cryptocurrency Events Tracking Calendar Site Launches

Coindar is designed as a web-based events calendar, which offers a direct line to developers of various blockchain projects. The tool is designed to be utilized on the desktop. It creates an ecosystem where users are able to efficiently display meetings, technological updates, and even report new milestones they have hit. All of these things […]

2018-7-22 08:38


Фото:

JPMorgan: Ripple, Bitcoin, Ethereum, Gardona, Dash, Litecoin stay here

This prediction by JPMorgan has been mentioned in an internal report of the American multinational investment bank and financial services company, headquartered in New York City. Various executives, including the CEO of the company Jamie Dimon, have clearly stated that they believe that cryptocurrency is actually a fraud. However, the internal report holds an entirely different

2018-7-20 18:24


Фото:

Report: Blockchain cost nearly $ 12 billion to strike by 2022

A new report published by the International Data Corporation expects spending on blockchain solutions to increase annually at a growth rate of nearly 75 percent through 2022. Dubbed the “Worldwide Semiannual Blockchain Spending Guide,” analysts at the firm expect total spending on projects in the blockchain industry to hit $11.7 billion in 2022 alone, compared

2018-7-20 00:37


Фото:

UPenn Law: Majority of ICOs Break Whitepaper Promises, Retain Centralization

Initial Coin Offerings (ICOs)–ICOs continue to make headlines along the academic circuit, and not in a positive light. On Tuesday, a new report from the University of Pennsylvania Law School revealed that in addition to breaking whitepaper promises, the majority of ICOs were guilty of retaining centralization in their issued currencies, thereby violating one of […] The post UPenn Law: Majority of ICOs Break Whitepaper Promises, Retain Centralization appeared first on Ethereum World News.

2018-7-19 03:57


Фото:

The Daily: Report Sees UK as Crypto Leader, Jersey Adopts ICO Rules

The United Kingdom has what it takes to become a true leader in the crypto space, according to a new report covered in today’s Bitcoin in Brief. Also in The Daily, the British Crown dependency of Jersey has adopted new requirements for ICO projects to better protect participating investors, Malta now has a two-way bitcoin […] The post The Daily: Report Sees UK as Crypto Leader, Jersey Adopts ICO Rules appeared first on Bitcoin News.

2018-7-18 14:25


Фото:

VanEck and SolidX File for Physically Traded Bitcoin “Solid” ETF

New York-based investment management firm, VanEck has partnered with SolidX blockchain and Fintech company,  as part of a strategic move to launch a Bitcoin-backed ETF.   A Tall Ambition? According to an ETF Strategy report,VanEck asset management company in conjunction with SolidX blockchain and Fintech firm have drafted a joint SEC filing for a physically-backed bitcoin ETF that will be insured.

2018-7-17 23:00


BlackRock Asset Management Firm is Studying Bitcoin & Crypto Space For First Time

World's Biggest BlackRock Looking At Bitcoin From previous comments several months ago that were unusual from legacy investment at the time, the world’s largest asset manager has spoken again. A July 16, 2018 Financial News London report notes that the company is considering bitcoin trading in new ways. The New York asset management company is […]

2018-7-16 19:18


Фото:

UK Poised to Lead Cryto and Blockchain Economies, New Report Claims

A new report claims that the United Kingdom is poised to become a leader in the blockchain technology and cryptocurrency economies.  ‘The huge impact it undoubtedly will have in Britain and globally’ The conclusion comes from an analysis conducted by the Big Innovation Centre, DAG Global, and Deep Knowledge Analytics — as well as the all-party parliamentary group on blockchain — which has reportedly found that Britain possesses all of the essential resources needed to Read More The post UK Poised to Lead Cryto and Blockchain Economies, New Report Claims appeared first on Bitcoinist.com.

2018-7-16 18:00


Фото:

New prevention scaling by performance test

Whiteblock Inc., a blockchain testing company, has announced completion of a performance analysis report conducted for its latest client, Ubiq Technologies. Ubiq collaborated with Whiteblock’s Blockchain Testing as a Service (BTaaS) team to benchmark performance and identify the correlation between block gas limits and transactional throughput for the Ubiq blockchain platform. The BTaaS conducted the

2018-7-15 08:33