Japanese Finance Minister on cryptocurrencies
(18 Jul 2019) Top finance officials from the Group of Seven rich democracies are warning that cryptocurrencies like Facebook’s Libra should not come into use before “serious regulatory and systemic concerns” are addressed.
During a press conference in Chantilly on Thursday, Japanese Finance Minister Taro Aso expressed concern over the issue and stressed that his cabinet would look further into regulation of so-called stablecoins, which are cryptocurrencies pegged to real currencies.
Aso’s comments came after the G7 chairman’s concluding summary revealed officials at the meeting “agreed” that stablecoins will have to meet “the highest standards” of financial regulation to prevent money laundering or threats to the stability of the banking and financial system.
The statement said other ministers, including French host Bruno Le Maire and US Treasury Secretary Steven Mnuchin, concurred those concerns must be addressed “before such projects can be implemented.”
During the press conference, Aso also commented on a potential rate hike of Japan’s consumption tax later this year.
He said that it was not certain that the tax rate would be increased, however, added that in the event it would be, he would try to avoid “starting from a pessimistic premise” in order to minimise market volatility.
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