G7 Countries has said that digital currencies such as Facebook Libra raise serious concerns and must be regulated as tightly as possible to ensure they do not upset the world’s financial system.
Recently,Facebook had decided to launch a cryptocurrency called Libra.The currency is designed not to be a speculative asset like Bitcoin but a form of digital money backed by a reserve of assets.
The G7 Countries has also opposed the idea that companies could have the same privilege as nations in creating means of payment but without the control and obligations that go with it.
The countries has also said that Facebook’s ambitions for a digital currency might not only weaken their control over monetary and banking policies but also pose security risks.
The G7 also agreed that large tech companies such as Google,Amazon ,Facebook or Apple can be taxed in the countries in which they make money even without being physically present there.
The Group of 7(G7) is a group consisting of Canada,France,Germany, Italy,Japan,United Kingdom and the United States.The European Union is also represented within the G7.
These countries are the seven major advanced economies as reported by the International Monetary Fund.The G7 is actually an informal grouping whose summits typically focus on large issues of global economy and governance.
Crypto currency is a digital currency.It uses strong cryptography to secure financial transactions,control the creation of additional units and verify the transfer of assets.E.g. Bitcoins, ethereum etc.