G7, an international organization composed of the financial leaders of the world’s seven biggest economies, opposes the release of Facebook’s Libra token until it is fully regulated.
Last year, the social media giant Facebook expressed its intention to create a coin that aims to help unbanked people in their daily payment system. Along with this, Facebook also reveals the details of Libra (LBR), a stablecoin backed by multiple currencies worldwide.
Whatsapp and FB Messenger would integrate Calibra, LBR’s own digital wallet. According to a published statement, Libra will not be fully controlled by Facebook itself. Instead, it will have other partners such as Visa, Uber, and more. This will help Facebook in deciding what is best for its token, before and after its public release.
These events caught the attention of financial leaders from Canada, France, Germany, Italy, Japan, the UK, and the US. In a published report, G7 agreed to a decision that Libra must not be launched until it upholds certain rules and regulations.
G7 further expressed its opinion in a draft that says:
“No global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements.”
For now, Facebook has not yet released its official announcement regarding the opinion of the G7. Regardless, the multinational company continues to provide a seamless way of communication across borders. If the Libra project comes to life, sending funds globally will be easy; similar to sending messages via messenger.