Digital Currencies: Economic and Geopolitical Challenges
The governments of the G7 are well aware of the benefits of digital financial technology, but are also hugely concerned about the public policy and geopolitical threats from this potentially disruptive innovation, especially from so-called ‘global stablecoins’ (GSCs) operated by loosely regulated, non-financial technology giants, but denominated in national currencies.
A recent G7 report warns such innovations raise serious questions about a range of public policy issues, including ‘challenges to fair competition, financial stability, monetary policy and, in the extreme, the international monetary system’. G7 ministers and governors have stated quite explicitly that no global stablecoins should begin operation until regulatory and oversight issues are resolved.… Seguir leyendo »