Global Financial Regulators to Discuss Cryptocurrencies at G7 Summit

Central bankers and finance ministers from the Group of Seven (G7) nations are reportedly planning to discuss the regulation of cryptocurrencies.

According to a Reuters report on Tuesday, French central bank governor François Villeroy de Galhau said that the United States, Canada, Japan, Germany, France, Italy and the United Kingdom are likely to discuss the regulatory framework for cryptocurrencies at meetings in Bonn, Germany, and Königswinter on Wednesday. Speeches on related issues. Villeroy reportedly said that the recent volatility in the cryptocurrency market — possibly referring to the unpegging of some stablecoins from the U.S. dollar, as well as falling prices of major tokens — is a “wake-up call” for regulators around the world.

“Europe has paved the way for MiCA,” Villeroy told the Emerging Markets Conference in Paris, referring to legislation from the European Parliament aimed at forming a regulatory framework for cryptocurrencies. "We'll probably be discussing these issues ... with a lot of other people at the G7 meeting in Germany this week."

In a speech at the Emerging Markets Conference in Paris on Tuesday, the governor of the Bank of France added:

“If cryptoassets are not regulated, supervised and interoperable in a consistent and appropriate manner across jurisdictions, they could disrupt the international financial system.”

According to the G7 website, finance ministers and central bank governors will meet in Germany on May 18-20 to discuss policies related to members' recovery and financial stability due to the COVID-19 pandemic, "in the context of digitalization and climate neutrality." Shaping the coming transformation process in the context of the 2010-2019 World Economic Forum.” and the IMF’s commercial policy. The group issued guidelines for a possible central bank digital currency in 2021, and reportedly warned that certain stablecoins could threaten the global financial system in 2019.

Villeroy previously urged EU officials to develop a regulatory framework, given the growing role of cryptocurrencies in the regional market, saying they only have "one to two years" to act. Ahead of his French election victory, Macron said he supported the European Parliament's recent efforts to regulate cryptocurrencies, including MiCA, adding that no rules should hinder innovation.