G-7 industrialized countries warned that Facebook’s cryptocurrency Libra might be a threat to the global financial system.
The BBC reported that the report pointed out nine risks the digital currency would pose to the global financial system. It cited the report as saying that the G-7 central banks would have difficulty in issuing a license to Libra even if Libra meets the requirements the G-7 central banks demand.
The report said Libra and other digital currencies would ensure that they are not used for money laundering and terrorist financing.
The report would be forwarded to the IMF annual meeting.
Unlike Bitcoin and Ehtereum, Libra is a stable coin, which is pegged to the dollar and the euro. However, Libra might create a problem in setting the interest rates, the report said.
Until all risks disappear, the digital currency should not get official recognition, it added.
