G7 vows to fight ransomware attacks; say stablecoin needs regulation

Libra

Fiscal leaders of this world’s seven biggest economies on Tuesday pledged to fight rising ransomware strikes amid the COVID-19 pandemic, also said no stablecoin surgery should commence until it’s properly regulated.

In a joint statement, the fund officials of the US, UK, Canada, Japan, Germany, France and Italy said electronic payments may increase access to financial services and reduce inefficiencies and costs, but these payments should be “appropriately supervised and regulated.”

The announcement, a draft of which was initially reported by journalists at our partner news agency Reuters on Monday, did not cite Facebook’s Libra stablecoin by name, but was clearly targeted at the initiative.

“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards,” the statement said.

Stablecoins are tied to a conventional currency or basket of assets, and employed for payments or for storing value.

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The G20’s Financial Stability Board (FSB) set out 10 recommendations in April to get a common, global approach to regulating stablecoins, prompted by social media giant Facebook proposing its Libra stablecoin.

The joint announcement issued by Group of Seven finance ministers and central bankers following a videoconference meeting reported a number of G7 authorities are investigating the opportunities and risks connected with central bank digital monies (CBDC’s).

The statement also expressed concern with the rising danger of ransomware attacks against the financial services sector in recent months, with “malicious actors targeting critical sectors amid the COVID-19 pandemic.”

In a separate annex on ransomware, the officials stated some prominent strains of ransomware was connected to groups that “are vulnerable to influence by state actors.” It didn’t name any specific countries involved.

We affirm our resolve to combat this threat collectively as well as individually,” it said.

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The G7 officials called on all countries to execute Financial Action Task Force standards to reduce offenders’ access to and manipulation of financial services, and said they’d work to enhance a coordinated response, including through data sharing and economic actions.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Andrea Shalal in Washington and Jan Strupczewski in Brussels. Editing by Chizu Nomiyama and Paul Simao.

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