FATF raises money laundering concerns over weight and stablecoins

The Global Monetary Watchdog, the Financial Action Task Force (FATF), has added its voice to the growing chorus of concerns about Facebook's weight and other stacking coins.

Mass adoption of such currencies may hinder efforts to detect and stamp out money laundering and terrorist financing, Reuters reported on October 18.

Managing Potential Risks in Mass Adoption

Speaking to reporters in Paris, FATF President Xiangmin Liu said that both stackcoins – and the companies behind them ̵[ads1]1; would be subject to global cryptocurrency and traditional financial assets standards:

"Should the stackcoins become widespread, it could potentially lead to new risks related to money laundering and terrorist financing […]. It is our job to ensure that the new risks associated with stacking coins will be adequately addressed. ”

Everyone hates Libra

Stablecoins has been around for several years, even though it is only Facebook's June announcement of Libra that has attracted increased scrutiny as of late.

Authorities across the globe have raised concerns about Libra, from questions of money laundering to undermining and posing a threat to national currencies. In particular, Facebook is seen as having the reach and profile to finally bring stablecoins and cryptocurrency into the mainstream with its billions of users worldwide.

Earlier today, a task force from the G7 group of countries released their full report on the potential impact of global stablecoins.