LONDON (Reuters) – The world’s leading economies need to plug gaps in their rulebooks to avoid digital currencies like Facebook’s planned Libra stablecoin from undermining financial stability, the Group of 20 Economies’ (G20) regulatory watchdog said on Tuesday.
FILE PHOTO: Small toy figures are seen on representations of virtual currency in front of the Libra logo in this illustration picture, June 21, 2019. REUTERS/Dado Ruvic/Illustration/File Photo
Stablecoins are tied to a traditional currency or basket of assets, and used for payments or storing value.
The G20’s Financial Stability Board (FSB) set out 10 recommendations on Tuesday for a common, international approach to regulating stablecoins, prompted by social media giant Facebook proposing its Libra stablecoin.
They should face the same rules as other businesses that present the same risks, regardless of technology used, it said.
Existing financial rules, such as for payments and customer checks, generally apply in…
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