According to a new report from Reuters, citing EU documents, the Financial Ministers of countries from the Europian Union will be urging G20 members to provide a response on their stance on Facebook’s stablecoin, Libra.
Per the terms-of-reference document, stablecoins such as Libra bring to light multi-faceted regulatory challenges and, hence, a response is needed at a global level.
Latest developments with regard to stablecoins and the multi-faceted regulatory, oversight and supervisory challenges these represent, call for seamless cooperation and concerted response at global level. – Reads the document.
According to officials, the European Central Bank has also called for serious oversight of the project and they intend to present a report on it during the G20 meeting.
The Knot Gets Tighter For Libra
It seems that Libra is having tough times as of late. As CryptoPotato reported back in August, there were fears that main supporters might be leaving the project amid worries of growing regulatory scrutiny and skepticism.
Just yesterday, PayPal, one of the world’s largest online payment processors, as well as a key player in Libra Association, announced that it is withdrawing from the initiative and that it will be focusing on its own core businesses.
PayPal also said that it would forego any potential further participation in the project, despite remaining supportive of its aspirations.
It’s questionable where the project will take from here. Facebook’s Libra has been under the radar of regulators ever since it was launched and so far it hasn’t seem to receive any support on behalf of legislators whatsoever. In fact, countries such as France and Germany openly said that they will work towards blocking the project because they think it will dismantle the authority of traditional financial institutions.