Japan Analyses Libra’s Economic Influence And How It Can Affects Financial Stability as G7 Approaches
- Japan analyses Libra influence on the economy and the impact it can have on the economy
- The virtual currency was announced by Facebook on June 18
Japan is analyzing the effects that the recently announced Libra stablecoin would have on the financial markets and the economy. This is according to a recent report released by Cointelegraph Japan on July 12. There are many other jurisdictions around the world that are also worried about the negative impact that Libra could have on the economy.
Japanese Regulators Want To Know More About Libra
On July 13, Reuters released a report in which they informed that Japan has set up a working group to discuss the impact of Facebook’s proposed Libra digital asset. The decision comes a few days before a G7 finance leaders’ meeting in which the topic will be an important topic on the agenda.
The new working group consists of the Bank of Japan, the Ministry of Finance and also the Financial Services Agency (FSA). These agencies will be meeting this week and coordinate different policies to better understand the impact of Facebook’s virtual currency on the market.
This is not the first G7 country that created a special task force to address the new challenges proposed by Libra Indeed, France has also created a G7 taskforce to examine the role central banks will have in order to regulate Libra and other digital assets. Officials expect that other regulators will join the group due to the impact that Facebook’s project can have on the market.
In addition to it, the European Central Bank policymaker Benoit Coeure is also expected to deliver a report on the matter ahead of the G7 meeting that will be taking place in Chantilly.
Facebook released the Libra digital asset on June 18 with the intention of making transfers easier for users around the world. With this new virtual currency, it would be possible for individuals to have access to financial services when before they were not able.
Other regulatory agencies in countries such as the United Kingdom, the U.S. or Singapore are also considering new regulations for Libra. The U.S. President Donald Trump commented that if Facebook wants to offer banking services it would also have to follow banking regulations as many other companies.