The Group of Seven, or G7, central bank governors and finance ministers are allegedly planning to discuss cryptocurrency legislation.
According to a Tuesday report from Reuters, representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom are expected to speak on issues related to a regulatory framework for cryptocurrencies at a meeting starting on Wednesday in Germany’s cities of Bonn and Königswinter.
Villeroy allegedly stated that recent crypto market volatility had served as a “wake-up call” for global authorities, pointing to several stablecoins de-pegging from the US dollar and the prices of key tokens falling.
G7 will discuss the urgent need for crypto regulations
“Europe paved the way with MiCA,” referring to the European Parliament’s legislation aimed at forming a regulatory framework on crypto. “We will probably discuss these issues among many others at the G7 meeting in Germany this week.”Villeroy at an emerging markets conference in Paris
Finance ministers and central bank governors will meet in Germany from May 18–20 to discuss policies related to member countries’ recovery and financial stability following the COVID-19 pandemic.
They will also discuss “shaping the upcoming transformation processes in the context of digitalization and climate neutrality” and business policy at the International Monetary Fund, according to the G7 website.
The organization released recommendations for the likely implementation of central bank digital currencies in 2021, as well as a warning that certain stablecoins may pose a threat to the global financial system in 2019.
Given crypto’s expanding importance in regional markets, Villeroy has asked EU officials to build a legislative framework, claiming they only had “one or two years” to act.
Prior to his election victory in France, Emmanuel Macron stated that he backed the European Parliament’s recent moves to regulate cryptocurrency, including MiCA, but that any regulations should not stifle innovation.