The need for regulation became apparent when Facebook announced the launch of Libra, a secured digital currency. European Union finance ministers at the G20 meeting in mid-October will draw the attention of their colleagues from other G20 countries to the need for a global regulatory response to the emergence of secured digital currencies such as Facebook Libra.
Ministers who formally approve the text of the appeal next week are also going to urge G20 partners to reform taxation of digital companies in 2020 and urgently eliminate trade tensions that “jeopardize global growth.”
Facebook has announced plans to launch the digital currency Libra in June this year. This currency refers to “stable” or “secured” cryptocurrencies, as it is secured by assets such as cash deposits, short-term government securities or gold. Facebook plans were critical, while France and Germany even saw Libra as a threat to EU sovereignty and announced their intention to block the launch of the currency in Europe.