According to Reuters, the G20 regulator said on Tuesday that major global economies need to formulate basic regulatory rules for stable coins in advance in order to avoid being similar to Facebook ’s planned launch of Libra Currency destabilizes financial stability.
After the social media giant Facebook proposed Libra, the Group of 20 Financial Stability Board (FSB) made 10 recommendations on Tuesday aimed at establishing a common, international stable currency supervision mechanism.
The FSB said that the coverage of regulatory mechanisms in various countries may be uneven, exposing the flaws in regulating cross-border stable coins. And this new one proposes flexible, cross-border cooperation to avoid inconsistencies between different jurisdictions.
Due to doubts from regulators and the central bank, several major Libra sponsors, including Visa, Mastercard, and PayPal, later withdrew from the Facebook project. National central banks said that Facebook’s potentially huge influence on cross-border payment will make it an instant, systemic competitor to traditional currencies.
It was reported that Facebook said last month that it still plans to launch Libra, but is also developing a digital version of the government-backed currency.