A G7 task force reports that stablecoins, such as Facebook’s Libra, present significant risk to the global financial system but also have potential in the field of payments. Doubling down on regulations On Oct. 18, in a report requested by the G7 finance ministers and central bank governors, the task force confirmed that the group of the seven wealthiest nations would not allow any global stablecoin to launch without adequately addressing the related challenges and risks. Cointelegraph reported on an unpublished draft of the same report on Oct. 14. The full report reads: “No global stablecoin project should begin operation …

Almost three-quarters of German consumers would not use Facebook's planned digital currency Libra, according to a recent poll. Only 27 percent considers using Libra On Oct. 17, Cointelegraph auf Deutsch reported that out of 2,000 Germans aged 16 and over, only 27% would ever consider using the social network’s stablecoin as a means of payment at home or abroad. The poll was conducted on behalf of the Wirtschaftswoche business news magazine and Creditplus Bank AG. The results indicate that 73% completely reject the idea of Libra as a digital currency — 42% because they do not trust Facebook as a …

United States Senator Mike Rounds has expressed his support for Facebook’s Libra coin in a letter sent to the Anchorage Trust, a member of the nonprofit Libra Association. United States payment systems in its infancy On Oct. 17, Rounds wrote to Nathan McCauley, president of crypto custodian company Anchorage Trust, where he expressed his concerns that other parts of the world are “dwarfing” the United States in innovative payment technologies. The Senator points to the people’s Republic of China, where 80% of consumers used mobile payment systems last year, compared to only 10% in the U.S. According to the Senator, …

Facebook’s dream of being a cryptocurrency giant is seemingly becoming more distant by the day, as increasing regulatory uncertainty continues to jeopardize the company’s Libra project. While Libra has been surrounded by anything but good news even before its launch, crypto watchers should ask themselves, Does Bitcoin need Libra to thrive at all? A crypto world without Libra — is that a good thing or not? What would a no-Libra crypto world be like, and how would that impact Bitcoin? Scrutiny Despite its innovative approach and its ambition as a global currency, Facebook’s Libra seems to remain an unwelcome presence …

France’s economy and finance minister has repeated his criticism of Facebook’s digital currency Libra, saying he cannot allow its existence. Le Maire: France has “clear position” on Libra In an opinion piece for the Financial Times on Oct. 17, Bruno Le Maire claimed Libra would take power over currency away from national governments. His comments echo similar reservations from Germany’s finance minister, Olaf Scholz, earlier this month. Le Maire wrote: “I cannot countenance one of a sovereign state’s most powerful tools, monetary policy, falling under the remit of entities not subject to democratic control.” France has taken a hardline stance …

A member of the Federal Reserve’s board of governors has said that Facebook's Libra could pose risks to consumers due to a lack of clarity over their rights with respect to the token’s underlying assets and to the system overall. Lael Brainard — who chairs several Fed committees — outlined her critique of Libra during a speech delivered at The Future of Money in the Digital Age forum in Washington, D.C. on Oct. 16. Consumer rights remain opaque Brainard took stock of a number of existing payments networks on digital platforms, such as Alibaba and WeChat, noting that by some …

The Swiss Federal Council is continuing to keep close tabs on global stablecoin projects and their possible opportunities and challenges. Switzerland is seen as very crypto-friendly In a news release on Oct. 16, the Swiss Federal Council stated that it was recently informed about “current opportunities and challenges associated with stablecoins” and that Switzerland will continue to monitor new digital technology developments, such as blockchain and distributed ledger technology. The Federal Council states that, while the mountainous European country is generally seen as very crypto-friendly and “open to innovative approaches in the financial market,” it remains committed to addressing the …

⁠David Marcus, the head of Facebook’s forthcoming cryptocurrency wallet Calibra, said that he is a fan of Bitcoin (BTC) but it is totally different to the proposed Libra stablecoin. Bitcoin is digital gold, Marcus says In a Squawk Box interview on Oct. 16, Marcus stated that he has been looking at Bitcoin since 2012 and considers it to be akin to digital gold. When asked by Squawk Box co-host Joe Kernen if he owns any Bitcoin or other cryptocurrencies, Marcus did not answer directly but noted that he was an early fan of the major cryptocurrency. He said: “I’m a …

The head of Facebook's Calibra has claimed that the recent withdrawal of the seven companies from the Libra Association has no impact on the project. Dropouts will still be able to work with Libra In an interview with Yahoo Finance on Oct. 15, Calibra’s David Marcus argued that Facebook’s cryptocurrency project is “absolutely not” in jeopardy after PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago and Booking quit the Libra Association. Marcus emphasized that companies outside the formal association will still be able to offer services on the platform: “One thing that is not well understood is that you don’t need …

Analysts at RBC Capital Markets have suggested that stifling Facebook’s Libra may leave the field open to China’s central bank digital currency (CBDC) to dominate in emerging economies. China shifts development of digital currency in extra gear On Oct. 15, financial news outlet Markets Insider reported that RBC analysts believe that once Facebook announced its Libra stablecoin plans, China shifted development of its own yuan-backed CBDC into the next gear. RBC wrote to clients: "If US regulators ultimately dismiss Libra and decide not to draft regulations to encourage crypto innovation in the US, China's CBDC may be strategically positioned to …

Bank of England Governor Mark Carney has defended Facebook’s choice to create a new currency. Canadian news outlet TheStar reported Carney’s remarks on Oct. 15, noting that he highlighted the shortcomings of the current traditional financial system. Because of the inefficiency of the payments, Carey thinks that firms such as Facebook should be involved in projects like Libra. The current payments industry is lacking More precisely, he reportedly criticized the high costs of moving money, saying that they penalize small businesses and can cost firms as much as 200 basis points per transaction, besides being processed too slowly. According to …

United States Rep. Warren Davidson has said that Facebook adding Bitcoin (BTC) to its Calibra wallet would be a “way better idea” than creating its new currency Libra. In an interview for the Noded Bitcoin podcast on Oct. 11, the Republican said that “part of the beauty” of Facebook’s unveiling its proposed Libra stablecoin is that it crystallized all of the problems that already exist on the social media platform today. “Do we want filtered transactions or freedom?” Davidson argued that the congressional hearings devoted to Libra this July had compounded the intense pressure Facebook is already under, noting that …