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CHANTILLY, France, July 18 (Reuters) - Stablecoins likeFacebook's Libra can foster financial inclusion but they must beheld "to the highest regulatory standards" to ensure that theyaren't used to launder money and that users are protected, aGroup of Seven taskforce on the issue concluded.
The taskforce presented its first report to G7 financeminister and central bankers meeting in Chantilly, France.
Facebook's plans to launch Libra, a digital token backed byfour official currencies, have raised concerns ranging fromconsumer protection to money laundering and even the notion thatthe traditional monetary system could be disrupted.
The taskforce, chaired by European Central Bank board memberBenoit Coeure, found stablecoins can bring down the cost ofremittances and forms of payment, helping poorer people who canill afford financial services.
But they need to be strictly regulated to ensure they arestable, safe and free of criminal activity.
"A global stablecoin for retail purposes could provide forfaster and cheaper remittances, spur competition for paymentsand thus lower costs, and support greater financial inclusion,"Coeure told the G7 meeting.
"However...they give rise to a number of risks related topublic policy priorities including anti-money laundering andcountering the financing of terrorism, consumer and dataprotection, cyber resilience, fair competition and taxcompliance."
(Reporting By Francesco CanepaEditing by Raissa Kasolowsky) ((@FranCanJourno francesco.canepa@thomsonreuters.com;004906975651247; Reuters Messaging:francesco.canepa.thomsonreuters.com@reuters.net))
