Japanese authorities have announced the setting up of a body which will look into the effects of the Libra stablecoin on the financial markets and the fiscal health of the economy in general. The announcement was made via a newsletter.
The liaison conference will see the participation of the Financial Service Agency, Bank of Japan, and the IT giant Facebook Inc., according to the newsletter. The said organizations may also hold further meetings to discuss in detail the nuances of the prevention of money laundering activity and other illicit financial transactions which are being feared to get proliferated through the advent of the Libra Stablecoin.
Details of the Conference
Discussions supposedly will include the need for new regulatory policy surrounding cryptocurrencies, taxation and payments settlement norms within blockchains. This is because, for the first time, the governments around the world are faced with the challenge posed by the mass adoption of cryptocurrencies. While the head of Calibra, David Marcus has tried to convince the world about the safety and stability of the Libra blockchain as a mode of carrying out transactions, the policymakers seem to get cautious by the day.
The newsletter also mentioned that the proceedings will be used in engaging on this issue in international forums. The timing of the move has been allegedly decided keeping in mind the meeting of the G7 finance ministers and governors of central banks. The meeting is scheduled for 18 July, in Chantilly, France. France had already set up a task force to investigate the regulatory measures required to ensure that huge blockchain networks are held accountable. This clearly shows the concerns of different governments, regarding the announcement made by Facebook to launch the stablecoin. Apart from the governments, advocacy groups, and business leaders like the co-founder of Ethereum Mihai Alisie have shown their apprehensions regarding the nature of the stable coin.