The G7 central bank governors and finance ministers are reportedly planning to discuss cryptocurrency legislation at the G7 meeting in Germany .
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 in Germany’s cities of Bonn and Königswinter starting on Wednesday, according to a Tuesday report from Reuters.
Villeroy allegedly stated that recent crypto market volatility had served as a “wake-up call” for global authorities, pointing to several stablecoins depegging from the US dollar and the prices of key tokens falling.
“Europe paved the way with MiCA,” Villeroy said at an emerging markets conference in Paris, referring to European Parliament legislation establishing a regulatory framework for cryptocurrency. “We will almost certainly […] discuss these and other concerns at the G7 conference in Germany this week.”
In an address to the Emerging Market Forum in Paris on Tuesday, the Bank of France governor added:
“Crypto assets could disrupt the International Financial System if they are not regulated, overseen and interoperable in a consistent and appropriate manner across jurisdictions.”
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 in the aftermath of the COVID-19 pandemic, “shaping the upcoming transformation processes in the context of digitalisation 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 could 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, and that any regulations should not stifle innovation.
