The G7 officials from the countries supported the need for cryptocurrency to be regulated. The US department reported this development yesterday, following the new backings of financial experts and bank officials for the need to regulate the digital assets.

Steven Mnuchin hosts G7 officials in virtual meeting

In a meeting hosted by Steven Mnuchin, the treasury secretary for America had representatives from Japan, UK, Canada, France, Italy, Germany alongside side the country’s central bank regulators and ministries. The influential group stressed the need for adequate regulation for cryptocurrency and highlighted some disadvantages of the inappropriate use of the currency.

There is controversy brewing for Facebook due to Germany’s finance minister, Olaf Scholz’s criticism of the platform’s plans to create its digital currency called ‘Diem’ in Europe. He was against the steps private bodies were taking to create a cryptocurrency in the region. The minister was confident that Germany and Europe would not grant the firm entry if its regulatory framework has not been up in place. He stressed the need to have currency controlled mainly by the state.

The countries discussed thoroughly to prevent the illicit use of the technology. They were not pleased with the abstract framework and needed a precise regulation if the currency is to be continued. The officials took it as a duty to stop individuals from using the cryptocurrency for selfish malign purposes. The powerful countries saw the importance of a joint statement to drive home their point, still under the need to give adequate regulations. Despite the criticism of crypto, the group acknowledged its time and cost-effectiveness during transactions.

Why G7 want cryptocurrency to still be in existence

Plans for the Central Bank Digital Currency might soon come to play, following the encouragement of Olaf, based on Europe’s need to find solutions for an effective way to make payments. The group spoke of the ever-changing landscape of cryptocurrency, trying to prevent the illegal use of the blockchain technology. There has been a lot of talks concerning the regulation of digital assets this year and especially after the US department of justice’s chase on crypto-native derivatives.

The German minister’s statement has caused some tension in the crypto space. Some believe the minster would do everything within his power to have the state control digital assets. If the asset eventually becomes controlled by countries, it will defeat the mission of cryptocurrency, which is creating a sole autonomy of people over their own money. Olaf did not hide his dissatisfaction at Facebook’s plans and even called it ‘wolf in a sheep’s clothing.’

Based on the statement of the G7 on turning cryptocurrency into an additional benefit only if it could be adequately supervised and regulated. The world’s largest economies are not entirely in support of Facebook’s plans believing it might wreck the financial system globally. The crypto community is expected to be prepared for major changes in the digital assets industry due to new plans to create a practical framework to prevent the illicit use of digital assets. The countries are motivated to improve and use the blockchain technology.