The G7 Agreed That Global Stablecoins are a Real Challenge for Financial Stability
The G7, which is comprised of the largest seven economies all over the world has drafted a report where they all agree that stablecoins that operate on a global level pose a serious threat to the financial stability of the modern world.
According to that report, any stablecoin who has the ambition to perform on a global level should not be allowed to open up shop before going through all of the necessary regulatory checks and complying with all of them. This is a serious hit to future projects, as adhering to every variation of financial regulation is impossible due to contradictions with various frameworks.
The argument that the G7 brings up is the scalability of said stablecoins. Although the coin is supposed to remain equivalent to a single currency unit, the scalability of cryptocurrencies cannot be denied. If too much demand befalls the coin, it will have to increase somehow, and if the traction decreases, then the whole community will be in danger of inflation.
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