A report conducted by the G7 taskforce has revealed that stablecoin, one like the upcoming Facebook’s Libra, can pose a serious threat to the global financial network, but also comes with benefits for payment fields.

Specifically, in a report presented in response to the demand from the G7 Finance Ministers and central bank Governors, the task force confirmed that the G7 members – a group of top 7 worldwide financially rich countries – will not authorize the launch of any stablecoin, unless relevant risks and challenges have been thoroughly analysed and dealt with. 

“No global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks outlined above are adequately addressed, through appropriate designs and by adhering to regulation that is clear and proportional.”

The task force further noted that, the first batch of digital coins have failed their mission at becoming a reliable and attractive payment option, as well as storing value. Stablecoins, however, is a more ready-to-use payment option and store of value, and carry the potential to help build a global payment system with enhanced speed, reduced cost with higher inclusion rate, compared to the existing system. 

The report then focused on outlining the risks and challenges that come along with stablecoin, regarding matters related to public policy, oversight and regulation, legal certainty, anti-money laundering, combating the possibility of financially aid terrorism compliance and tax compliance.