Global financial watchdog, the Financial Action Task Force (FATF), has added its voice to the rising refrain of considerations over Facebook’s Libra and different stablecoins.
Mass adoption of such currencies may hinder efforts to detect and stamp out cash laundering and terrorist financing, Reuters reported on Oct. 18.
Managing the potential dangers of mass adoption
Speaking to reporters in Paris, FATF president Xiangmin Liu stated that each stablecoins — and the businesses behind them — can be topic to international requirements on cryptocurrencies and conventional monetary property:
“If stablecoins were to become widespread, it could potentially lead to new risks regarding money laundering and terrorist financing […]. It is our job to ensure the new risks in connection with stablecoins will be adequately addressed.”
Everybody hates Libra
Stablecoins have existed for a number of years, though it is just Facebook’s June announcement of Libra that has attracted elevated scrutiny as of late.
Authorities across the globe have raised considerations about Libra, from money-laundering points to undermining and posing a menace to nationwide currencies. Facebook, particularly, is seen as having the attain and profile to lastly deliver stablecoins and cryptocurrency into the mainstream with its billions of customers worldwide.
Earlier at this time, a task-force from the G7 group of nations launched its full report on the potential impression of world stablecoins.