G-7 Finance Officials to Discuss Libra

Tokyo, July 15 (Jiji Press)--Top finance officials from the Group of Seven leading industrial nations this week will discuss how to regulate Libra, a cryptocurrency planned by Facebook Inc. Facebook plans to issue Libra in the first half of 2020. Given the U.S. social network's over two billion users, the digital coin could march government-issued currencies in terms of influence. The discussions among the G-7 finance ministers and central bank governors come as experts raise concerns about Libra, including how to ensure privacy protection and prevent its use in money laundering. The G-7 officials are set to meet in Chantilly, France, Wednesday and Thursday. France last month set up a working group of representatives from G-7 central banks. Based on a report from the group, the ministers and central bank governors will discuss Libra's risks and oversight. A report released by the International Monetary Fund Monday about the rise of digital money such as Libra said, "The power of network effects to spread the adoption of new services should not be underestimated." "International cooperation will become all the more relevant to avoid regulatory arbitrage and a dilution of regulation," the report said. The G-7 officials will also discuss taxes on digital services, an issue that has already become a matter of dispute between the United States and France. Leaders from the Group of 20 major economies, meeting in Osaka, western Japan, last month approved a goal of reaching agreement on international rules on digital taxes next year. The French Senate Thursday approved a bill that would impose a 3 pct tax on services provided by large technology companies. The United States has warned that the tax could discriminate against U.S. firms, threatening to impose retaliatory tariffs. END