Finance ministers and central bankers in the advanced economies of the Group of Seven (G7) strongly supported the need to regulate digital currencies. The information was disseminated by the U.S. Treasury Department, via a statement issued on Monday, following a virtual meeting of senior officials.
For his part, German Finance Minister Olaf Scholz issued a statement in very clear terms after the meeting, underlining his concerns about the authorisation for the launch of Facebook’s cryptocurrency Libravisa – just renamed Diem – in Germany and Europe.
“A wolf with sheepskin is still a wolf, ” he said. “It is clear to me that Germany and Europe cannot and will not accept their market entry until regulatory risks are adequately addressed,” he said, adding, “We must do everything we can to ensure that the currency monopoly remains in the hands of the states.”
Steven Mnuchin, secretary of the U.S. Treasury, hosted this year’s twelfth meeting of G7 finance officials, related to the COVID-19 pandemic, as Washington prepares to hand over the G7 presidency to Britain next month. G7 finance officials discussed ongoing responses to the “evolving picture of cryptographic goods and other digital goods and the work of national authorities to prevent their use for evil purposes and illicit activities,” the Treasury said.
“There is strong support throughout the G7 for the need to regulate digital currencies,” the statement states.
G7 officials reiterated their support for a joint G7 statement on digital payment in October, which said that digital payments could improve access to financial services and reduce inefficiencies and costs, but should be “adequately monitored and regulated”.
In addition, they discussed national and international economic responses to the COVID-19 pandemic, and strategies for a strong global recovery, according to the communiqué.
