Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
The seven world powers emphasized the need for cryptocurrencies and stablecoins to follow the same rules as the rest of the financial system.
El grupo de naciones G7 ha instado a los reguladores de las principales economías del mundo a agilizar las regulaciones en torno a las monedas digitales.
Lasdeclaraciones come after the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market an area or arena, online or offline, in which commercial dealings are conducted. underwent a significant correction a correction is a pullback of an asset’s price of at least 10% to adjust for over-valuation. following the collapse of the Earth UST. The Group of Seven, better known as the G7, is made up of the seven political, economic and military heavyweight countries; namely: Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and the United States.
In a document dated 20 May The G7 addressed a number of issues of international concern, including the ongoing conflict between Russia and Ukraine; macroeconomic stability; financial policies; and digitization. On this last point, the group specifically mentioned the issue of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies, pointing to the need for the new asset class to be held to the same regulatory standards as the rest of the financial system.
In the statements, the G7 urged the Financial Stability Board (FSB) to issue stricter compliance rules to counter money laundering. While the release makes no direct mention of UST and its plunge last week, it cites the recent “agitaciónThe market is a “market watcher” and pays special attention to stable currencies.
In light of the recent turmoil in the cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. market, the G7 urges the FSB, in close refers to the closing price; similar to the same term used in stock trading. coordination with international standard-setting bodies, to move forward with the rapid development and implementation of consistent and comprehensive regulation of cryptoasset issuers and service providers in order to maintain cryptoassets, including stablecoins with the same rules as the rest of the financial system.
G7 made special mention of stablecoins
The communication also called for the implementation of the Financial Action Task Force (FATF) travel rule and emphasized the need for regulation for the stablecoins (digital assets that seek to maintain parity with physical assets, usually fiat currencies such as the U.S. dollar).
In this regard, the G7 requested that ” disclosure and regulatory reporting be strengthened, for example, with respect to reserve assets backing stablecoins “ . The group was also incisive in rejecting a “stable currency” project. global “, an affair reminiscent of the now-abandoned plans of social media giant Meta ( Facebook) with Diem .
“ We reaffirm that no global stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. project should commence operations until it adequately addresses relevant legal, regulatory and oversight requirements through proper design and adherence to applicable standards “, indicó.
Meta finally scrapped plans this year to launch a new stablecoin global after repeated rejection by regulators in several countries around the world. Meanwhile, central banks in several nations have been working on issuing CBDCs, stable digital currencies pegged to fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. . China has launched its CBDC and the European Union is considering launching a digital euro.
“ The G7 maintains its commitment to a strict regulatory standards for global stablecoins following the principle of same activity, same risk, same regulation “, finished the group.
Earth under the watchful eye of regulators
The G7’s comments come just days after the dramatic implosion of the Earth . The project’s stable algorithmic currency, UST, began to lose its parity with the dollar on May 7. After that, everything went into a downward spiral. The stablecoin collapsed, dragging down with it its token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. hermano LUNA, native of Earth which went from USD $80 to zero in a matter of a few days.
When UST fell from its expected price of USD $1, Luna Foundation Guard a group dedicated to supporting the ecosystem Earth deployed its million-dollar reserves of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. to rescue the stablecoin and restore parity. The sale of Bitcoin exerted downward pressure on the market and caused – among other factors – havoc in the cryptocurrency market.
El evento también ha generado volatilidad entre otras principales stablecoins includingTether (USDT). USDT’s market cap has seen a reduction of nearly USD $10 billion; meanwhile, the cryptocurrency market has subtracted some USD $300 billion from its global capitalization, according to CoinMarketCap .
Regulators around the world have been keeping a close eye on the whole thing. L ast week, the U.S. Treasury Secretary, J Anet Yellen pointed to the collapse of Earth as an example of how stable currencies might ” present a risk to the financial system “. Los reguladores de United Kingdom said Friday that they will investigate the fall of the Earth to issue new rules for crypto .
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Article by Hannah Estefania Perez / DiarioBitcoin
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