The Financial Stability Union should speed up the development of digital asset regulation. The request is contained in the communiqué of the G7 finance ministers’ meeting.
The initiative emerged after the collapse of the Terra ecosystem due to the loss of the UST algorithmic stablcoin’s peg to U.S. currency. Earlier, U.S. Treasury Secretary Janet Yellen and other G7 dignitaries commented on the implications of the incident.
“Digital assets have the potential to disrupt the international financial system if they are not regulated, monitored and interacted with in a coherent and appropriate way across jurisdictions,” said François Villeroy de Galo, President of the Bank of France.
As a reminder, the G7 is demanding regulation of global stablcoins.