News

G7 finance chiefs pour cold water on Facebook’s digital currency plans

Charles de gaulle, France (Reuters) – a Group of Seven finance chiefs, with the launch of a cloud over the outlook for Facebook’s Scale, digital coin-in on Wednesday, calling for difficult regulatory issues would need to be worked out first.

FILE IMAGE: Representations of virtual currency are to be displayed on the front of the monitor the logo in this illustration picture the 21 of June, 2019 at the latest. REUTERS/dado Ruvic/Image/File Photo

The giant social media company is planning to launch a digital currency, has been met with a chorus of regulators and supervisors, central banks and governments have to say that it must have the respect of anti-money-laundering rules, and to ensure the safety and security of the transaction, and the information of the user.

However, there are also deeper concerns that the powers of the big tech companies increasingly encroach on the territories, which belong to the government, such as the issuance of currency.

“No, We can’t accept the fact that with a currency that has the same power and the same sort of role as a sovereign currency, the French Finance Minister Bruno Le Maire told the press.

The German Finance Minister, Olaf Scholz, said that Facebook’s plans did not “appear to be fully thought through”, adding that the security of the data.

“I am convinced that we must act quickly and Scale will not go down without all of the legal and regulatory questions are resolved,” Scholz told reporters.

In france, the chairman of the Group of Seven advanced economies this year, has asked the European Central Bank board member Benoit Coeure, for the setting up of a task force of the G7 to look at the crypto-currency is a digital coin as a Scale.

Coeure is due to have a draft report to the ministers and central bankers at the meeting, held in the picturesque castle town of Chantilly just north of Paris, france.

The central bankers are saying that if Facebook wants to take deposits it holds a banking licence, which would be subject to the strict regulations that that is is in the industry.

Related Coverage

  • The German minister of finances, Libra, cryptocurrency would have to wait for regulatory clarity
  • Terms and conditions are not in place for Facebook and the Scale is going in France

Some central banks also have to say that the people to transact anonymously, it is a non-starter, given the size of the financial sector, laws and regulations that require that payments made to the companies to maintain basic information about their customers.

JAPAN: A GLOBAL CONSENSUS IS NEEDED

Bank of Japan Governor Haruhiko Kuroda said that the task force of the G7 were likely to change over time to something, including to a broader range of regulatory bodies outside of the group, in view of the tremendous impact that Scale would have on the global economy.

“If the Scale is used all over the world, countries have to seek for an international coordinated response,” Kuroda said.

“This is not something that can be discussed among the G7 central banks, alone.”

At the G7 finance ministers are also concerned about how it is best to load up on the major tech companies, in France most of his time as chairman of the two-day meeting is to gain broad-based support for the need to guarantee a minimum income tax.

The G7 governments are concerned that the decades-old international tax rules, have been pushed to the limit by the emergence of companies like Facebook and Apple, who have book profits in low-tax countries, regardless of the source of the underlying income.

The issue has become more vexed than at any time in the last couple of days in Paris, defied the US President, Donald Trump, last week, by the passing of a load of the big digital companies with sales in France, despite the threat of the Home with the launch of a probe that could lead to the market rates.

The bilateral dispute to one side, and France and the United States of america for the benefit of the rules is to ensure a minimum tax, as part of an effort to almost 130 countries in the development of the international tax rules.

The French Finance Minister, Bruno Le Maire delivers a speech during a conference with the title “Bretton Woods, and 75 years later, in Paris, on July 16, 2019. REUTERS/Philippe Wojazer

Although it is a G7 chord, it would set the tone for the broader push is an agreement among all of the G7 ministers, at a minimum, the rate or range of rates, it is likely to prove elusive, as the Uk and Canada, to reservations, a French Finance Ministry source said on Friday.

“If we don’t agree on in the G7, at the level of the general principles for the taxation of digital businesses, today or tomorrow, but to be honest, it’s going to be hard for you to find out of 129 countries in the OECD,” Le Maire said.

Additional reporting by the Rest of the Handle, Leika Kihara, Francesco Canepa, Jan Strupczewski and David Lawder; Editing by Dan Grebler, Peter Graff and Andrew Cawthorne

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular