G7 Finance Ministers and Central Bank Governors discussed Facebook's virtual money project Libra (see EUROPE 12277/24) more closely on Wednesday 17 July. Their conclusion is clear, according to several sources: several questions will have to be answered before it can actually take shape.
While ministers acknowledged the “real needs” for new payment systems to reduce cross-border payment costs, all participants expressed strong concerns about this project, a source from the French G7 Presidency indicated. Another source at the meeting reported a “very informative and detailed discussion” that led to a “broad consensus on the need to act quickly”.
“We cannot accept to have a new currency with exactly the same type of power without the same type of rules”, warned French Finance Minister Bruno Le Maire before the meeting. And he added, “Today, I say very clearly, the conditions are not in place for this Libra currency to be put into operation”. According to him, we need “regulation” or at least “supervision”.
In June, just after Facebook's announcement (see EUROPE 12277/24), France requested that a working group on stable currencies be established (see EUROPE 12279/12), coordinated by Benoît Coeuré, member of the ECB's Executive Board. On Wednesday, the group presented a progress report to the G7 assessing the risks associated with these assets.
The group's report and discussion identified all the issues that need to be addressed, including regulatory issues such as the fight against money laundering, consumer protection, data protection and monetary policy issues, several sources indicated.
The group's interim report is confidential and only a summary will be made public on Thursday at the end of the meetings. (Original version in French by Marion Fontana)