G7 urges faster regulation of cryptocurrencies after TerraUSD collapse

FSB should accelerate the development of digital asset regulation. The request is contained in the communique of the G7 finance ministers’ meeting, Reuters reports.

The initiative arose after the collapse of the Terra ecosystem due to the loss of the US dollar peg by the algorithmic stablecoin UST. Earlier, the consequences of the incident прокомментировала US Treasury Secretary Janet Yellen and other senior G7 officials.

“Digital assets could disrupt the international financial system if they are not regulated, supervised and interact in a coordinated and proper manner across different jurisdictions,” — отметил François Villeroy de Galhau, Governor of the Bank of France.

Earlier, the British Treasury ruled out legalising algorithmic stablecoins.

Earlier, Galaxy Digital founder Mike Novogratz described TerraUSD as “a big idea that failed”.

Analysts at Goldman Sachs noted that algorithmic stablecoins can succeed only if they achieve broad adoption in payment transactions. 

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