G7 leaders urge to regulating cryptocurrency modules

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G7 leaders urge to regulating cryptocurrency modules

Even as Facebook is planning to go ahead with its high-profile cryptocurrency launch plans with the Libra, finance ministers of the eponymous Group of Seven (G7) countries warned that such currency modules need to be under stringent regulations.

France's finance minister Bruno Le Maire, who currently holds the presidency of the G7 countries (which rotates among its members) told the press on Thursday, 18th July that it was worrisome that privatised organisations could come up with currency modules like countries but were exempt from the set of guidelines that generally surround the issuance of currencies.

Le Maire was addressing the press during an informal meeting of G7 leaders in Chantilly, France. Le Maire said, "We cannot accept private companies issuing their own currencies without democratic control." Le Maire's opinion was met with support by Benoit Coeure, who is a board member of the European Central Bank.

Coeure said, "A global stablecoin for retail purposes could provide for faster and cheaper remittances, spur competition for payments and thus lower costs, and support greater financial inclusion." In addition to this, the G7 leaders also concurred that there needed to be instituted a digital tax system to bring companies such as Google, Amazon and Facebook among others under the taxation ambit.

The digital tax system would involve taxing these companies in countries in which they have monetised operations despite not being a physical corporate entity in such said countries.