[Brussels 4th Reuters]-European Union Minister of Finance (EU) will meet at the Governor of 20 major countries and territories (G20) in Washington on October 17-18, Facebook <FB .O> calls for global restrictions on “stable coins” such as “Libra”, which is aimed at issuance. It became clear in EU related materials.
Furthermore, it is important to reform the tax system of digital companies in 2020, and further appeals for an urgent response to trade friction that puts the world economy at risk.
Because stable coins are backed by assets such as deposits, short-term government bonds, and gold, unlike crypto assets (virtual currency) such as bit coins, stable coins are expected to have a stable value. The Facebook Libra is a representative example.
The EU Finance Minister explains at G20 that, in light of the recent movements of stable coins and multi-faceted regulations and supervision issues, it is necessary to coordinate with global cooperation.
France and Germany oppose the Facebook Libra as threatening the sovereignty of EU member states.
The European Central Bank (ECB) also claims that a strict monitoring system is necessary. According to EU officials, the report will be submitted at the G20.
The EU finance minister also reiterates concerns that trade friction is a drag on the global economy.
According to related documents, “current trade friction is a major concern and puts the world economy at risk”. Last week, the US decided on a retaliatory tariff for the EU over a subsidy for a major aircraft company, Airbus, and the US-EU controversy increased rapidly.
The EU Minister of Finance reasserts that in 2020, the tax system of digital companies needs to be radically reformed. The European Commission's European Commission has indicated its policy to implement reforms on its own.