G7 finance chiefs pour cold water on Facebook's digital coin plans

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CHANTILLY, France -- Group of Seven finance chiefs cast a cloud over prospects for Facebook's Libra digital coin on Wednesday, insisting tough regulatory problems would have to be worked out first.

CHANTILLY, France -- Group of Seven finance chiefs cast a cloud over prospects for Facebook's Libra digital coin on Wednesday, insisting tough regulatory problems would have to be worked out first.

"The sovereignty of nations cannot be jeopardized," French Finance Minister Bruno Le Maire told journalists after chairing the first day of the two-day meeting. "I am convinced that we must act quickly and that cannot go ahead without all legal and regulatory questions being resolved," Scholz told journalists.

Central bankers say that if Facebook wants to take deposits, it needs a banking licence, which would subject it to the strict regulation that goes with operating in that industry. G7 governments are concerned that decades-old international tax rules have been pushed to the limit by the emergence of companies like Facebook and Apple, which book profits in low-tax countries regardless of the source of the underlying income.

 

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