Finance leaders from the Group of Seven nations are worried about rising ransomware attacks on digital currency amid the coronavirus outbreak, and have called for a halt on the so-called "stablecoin" without adequate safeguards, a G7 statement said
WASHINGTON (Pakistan Point News / Sputnik - 13th October, 2020) Finance leaders from the Group of Seven nations are worried about rising ransomware attacks on digital currency amid the coronavirus outbreak, and have called for a halt on the so-called "stablecoin" without adequate safeguards, a G7 statement said.
"The G7 is concerned by the rising threat of ransomware attacks, particularly in light of malicious actors targeting critical sectors amid the COVID-19 pandemic," the group said in a statement on Tuesday. "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."
Stablecoin is a new class of cryptocurrencies that attempts to offer price stability and are backed by a reserve asset.
Tuesday's statement - issued after a video meeting hosted by US Treasury Secretary Steven Mnuchin among G7 finance ministers and central bank governors, as well as heads of the International Monetary Fund and the World Bank and Financial Stability Board noted that digital currencies had the potential to address frictions and reduce inefficiencies and cost in existing payment systems.
"At the same time, payment services should be appropriately supervised and regulated to address challenges and risks related to financial stability, consumer protection, privacy, taxation, cybersecurity, operational resilience, money laundering, terrorist and proliferation financing, market integrity, governance, and legal certainty, among others," the statement said. "A number of G7 authorities are exploring the opportunities and risks associated with central bank digital currencies. Confidence in the stability of domestic payment systems and the international monetary system is underpinned by credible and longstanding public sector commitments to transparency, the rule of law, and sound economic governance."
Concerns over the vulnerability of digital currencies to ransomware have spiked since the global outbreak of the coronavirus in March forced more users indoors, leading to a surge in online-based payments.
