According to recent reports, the finance ministers and governors of central banks that are members of the G7 Crypto (Group of Seven) are currently formulating a plan to debate the regulation of cryptocurrencies.
According to a report that was published by Reuters on Tuesday, the Governor of the Bank of France, Francois Villeroy de Galhau, stated that the representatives from the United Kingdom, Italy, France, Germany, Japan, Canada, and the United States will potentially converse on the matters dealing with a regulatory agenda for crypto on Wednesday in the German cities of Konigswinter and Bonn.
It has been reported that Villeroy discussed the recent volatility that has been seen in the cryptocurrency market, possibly pointing to the de-pegging of stablecoins from the United States dollar and the crash that has been seen in the prices of prominent tokens. This situation has been an alarming one for regulators all over the world. As Villeroy was commenting on the law that was passed by the European Parliament to build a regulatory agenda for cryptocurrencies, he added that the MiCA and Europe worked together to develop the agenda.
According to him, while they are speaking at the G7 summit that will be held in Germany this week, they would most likely dispute on the respective themes along with some other topics as well. During a speech that was given on Tuesday at the Emerging Market Forum, the governor of the Bank of France released another important piece of information. He stated that it is possible for crypto assets to cause disruption in the global financial system if they continue to be unregulated, interoperable, and not adequately and consistently supervised inside their respective jurisdictions.
According to the website of the Group of Seven (G7), the governors and finance ministers from the central banks will all get together in Germany between the 18th and 20th of May to discuss the policies that deal with the financial stability and recovery of the participant countries from the pandemic COVID-19, which is responsible for determining the future transformation procedures dealing with climate neutrality and digitalization, along with the business policy of the International Monetary Fund.
The organization has distributed instructions regarding the prospective debut of CBDCs in the previous year, and it has reportedly issued a warning that certain stablecoins may pose a threat to the global system of finance in 2019. Formerly, Villeroy has been successful in convincing the officials from the European Union to construct a regulatory agenda in accordance with the expanding role of cryptocurrency in local markets. He disclosed that the officials only had one or a couple of years left to take some sort of action in this matter.