The US Treasury Department reported that finance ministers and representatives of the national banks of the G7 countries supported the regulation of cryptocurrencies. In the statement, they were called “an emerging market” that needs a clear regulatory framework.
The announcement came after an online meeting hosted by Stephen Mnuchin, current US Treasury Secretary, with representatives from Canada, Germany, Japan, France, Italy, the United Kingdom, and the European Union. Recent developments regarding CBDC and private digital currencies have been a leading topic of discussion. Officials also discussed the potential risks posed by digital assets, including the possibility of their use for illegal purposes. Much has been said about the advantages of using cryptocurrency in financial transactions – for example, about reducing their cost and time costs.
German Minister of Finance Olaf Scholz spoke out the most in criticizing the expected launch of Facebook’s Diem cryptocurrency in his country and across Europe. In his opinion, private cryptocurrencies should not be allowed to enter circulation in the EU until currency risks are adequately assessed.
Note that Olaf Scholz recently voiced similar views at an online conference on the future of payment methods in the EU. At the same meeting, Christine Lagarde, ECB head, announced that she will work for the launch of the digital euro in the coming two to four years.
