G7 Report: Bitcoin Has Failed as Means of Payment and Store of Value
According to a report from the Group of Seven (G7) nations, cryptocurrencies including Bitcoin have failed to provide an authentic means for payment or store of value.
According to the group of the seven wealthiest nations, cryptocurrencies are not a solution; as they are “highly volatile,” have scalability limits, complicated user interfaces, and issues in governance and class for certain investors; and those engaged in illicit activities rather than as a means to make payments,” said the group.
On the other hand, the group which consists of France, the U.S., Japan, Canada, Italy, Germany, and the U.K. economies, published a final report on Stablecoins on Thursday. According to the report, Stablecoins present significant risk to the global financial system; however, they have potential in the field of payments.
Moreover, the report confirmed that the G7 would not allow any global Stablecoin; to launch without adequately addressing related challenges and risks. The full report reads:
“No global Stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks outlined above are adequately addressed, through appropriate designs and by adhering to regulation that is clear and proportional.”
Stablecoins More Suited to Payment and Value Storage
Furthermore, the report points out the potential challenges and risks posed by Stablecoins. The report says they would affect public policy, oversight and regulation, legal certainty, anti-money laundering and countering the financing of terrorism compliance and tax compliance, amongst others. However, the report claims they are more ready; to be used as a means of payment and a store of value; compared to other cryptocurrencies. They also added that Stablecoin could potentially develop global payment systems faster, cheaper and more inclusive than the present systems.
In conclusion, the G7 report has echoed what the Financial Action Task Force (FATF) has advocated for this past summer.
About The Author
Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.
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