ByBit
0
📰 News
146 views

“Global Stablecoins” Have to Be Checked for Investor Protection and Ensure AML Measures, Says G7 Report

  • Yuri Molchan
    📰 News

    Globally spread stablecoins may throw challenges to financial regulators and banks, says a recent report by G7’s FSB group

“Global Stablecoins” Have to Be Checked for Investor Protection and Ensure AML Measures, Says G7 Report
Cover image via www.123rf.com
Contents

The Financial Stability Board, a regulatory G7 group, has issued a report which says that global stablecoins, such as Libra, are going to present certain issues to financial regulators worldwide. The report was addressed to G20 financial ministers.

In particular, the group of experts believes that those stablecoins which are going to be used globally may threaten the current banking system and system of remittances.

👉MUST READ

Crypto Trader Says He's "Immediately Bullish" on Ripple's XRP, Adding That Stellar (XLM) Will Follow

Crypto Trader Says He's

Stablecoins may threaten the financial system

On Sunday, FSB (the Financial Stability Board), which works with the G7 group, issued a report urging regulators to conduct all possible measures for checking and controlling so-called stablecoins. In the letter, FSB says that stablecoins may be a source of extra issues and challenges to regulators around the world.

The issues the letter speaks of include AML and KYC, financing of terrorism, and possible difficulties brought on the conventional financial system.

The report also points out the positive sides of possible stablecoin usage in the future.

“Global stablecoins might offer a vehicle for cross-border payments and remittances for a large number of users.”

Stablecoins should encourage the upgrading of the current payment systems, says the G7 chairperson

Earlier this year, the working group of G7 also published a statement regarding stablecoins. The document speaks of them in a positive manner, saying that these assets can ensure cheap and fast remittance payments and bigger inclusion of the unbanked.

However, further on, the authors add that ultimately stablecoins should encourage the updating of the present systems for wiring money between countries.

“In this regard, stablecoin initiatives highlight the need to step up ongoing public and private efforts to upgrade existing payment systems.”

A good example of this is the way the global payment system SWIFT has changed, competing with Ripple – the company behind the XRP coin, though not a stablecoin.

In September this year, SWIFT announced the integration of its GPI service into local systems of payment in multiple countries, which is expected to make SWIFT’s payments faster and give the company an advantage over Ripple.

Libra is an example of regulators standing up together to the global stablecoin that Facebook’s Libra Association is currently trying to negotiate with regulators about. However, the asset's launch seems less and less probable, as regulators are rejecting it and getting Libra Association partners to back off from it. PayPal, Visa and Mastercard have already left the project.

Feel free to share your opinion of a possible impact of stablecoins on the global financial system in the comments section below!

Join our Telegram channel to get news even faster!

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted
0
📰 News
435 views

Bitcoin's Parabolic Uptrend Remains Intact Despite Price Collapse: Tuur Demeester

  • Alex Dovbnya
    📰 News

    Tuur Demeester wants you to buy the dip as Bitcoin touches the support of its parabolic uptrend for the first time since March

Bitcoin's Parabolic Uptrend Remains Intact Despite Price Collapse: Tuur Demeester
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Tuur Demeester of Adamant Capital has just taken to Twitter to calm down Bitcoin enthusiasts who might have been swayed by incredibly bearish sentiment on crypto Twitter. 

👉MUST READ

Bitcoin Price Slashed to $6K. Is This Best Black Friday Sale?

Bitcoin Price Slashed to $6K. Is This Best Black Friday Sale?

Bitcoin recently dropped to $6,800, its lowest level since early May. However, Demeester apparently sees this as yet another opportunity to buy the dip. He states that top coin's parabolic uptrend that started at the beginning of 2015 hasn't been violated. However, Bitcoin has tapped support for the first time since March when Bitcoin was trading well below $4,000. 

Shortly after printing a huge red candle on the logarithmic chart, the Bitcoin price spiked by 20 percent on Apr. 2, which started the coin's massive run to $13,700. 

👉MUST READ

Crypto Analyst Doesn't Expect Bitcoin Price to Repeat Past Halvenings

Crypto Analyst Doesn't Expect Bitcoin Price to Repeat Past Halvenings

As of now, BTC is down by nearly 50 percent from its yearly high, but this might not be the end of the nightmare for Bitcoin bulls. According to trading exert Josh Rager, the crypto king could plunge below the $7,000 level again after a fakeout to the $7,500 range. 

Gold bug Peter Schiff recently predicted that BTC could collapse to $10,000 level after competing the head-and-shoulders pattern.  

At the time of writing, BTC is sitting $7,313, CoinStats data shows. 

Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted