Japan has created a working group to scrutinize the concerns arising from the upcoming launch of Facebook’s Libra cryptocurrency initiative.
According to a Reuters report published on Saturday. The group, which began meeting last week, includes the country’s central bank, the Financial Services Agency, and the Ministry of Finance.
The regulators will use the opportunity to tackle the possible implications of Libra on financial regulation, fiscal policy, tax and payments before joining the G7 meeting on July 17-18 in Chantilly, France.
France, which holds the G7 presidency at present, already set up a task force to examine cryptocurrencies including Libra. The upcoming meeting will put the issue on the spotlight for sure.
The formation of the task force was revealed in late June, with French central bank governor Francois Villeroy de Galhau saying that the body would be headed by European Central Bank board member Benoit Coeure. The task force will inspect how cryptocurrencies are regulated to prevent money laundering and other issues.
Facebook’s crypto, however, was critiqued by Bruno Le Maire, foreign minister of France, last month over worries that Libra might expand to replace conventional money. During that time, he asked for the G7 central bank governors to make a report regarding Facebook’s crypto project for the July meeting.
“It is out of question’’ that Libra be authorized “become a sovereign currency,” Le Maire stated at the time. “It can’t and it must not happen.”
Reuters said that Coeure is anticipated to showcase an initial report on the issue at the Chantilly meeting.
Facebook is also facing strict scrutiny from the U.S. Even President Donald Trump expressed his views through series of tweets, saying Libra “will have little standing or dependability” and recommended to secure a banking license and comply with applicable regulations if its goal is to become a bank.