Bitcoin failed as a medium of exchange and a store of value - G7

Bitcoin and other cryptocurrencies cannot be considered either a “reliable and attractive” means of payment or a store of value, but stablecoins have potential. These are the conclusions drawn in the statement of G7.

"Given the innovative potential of the underlying technology, crypto assets were originally envisioned to address some of the challenges. However, to date, thy have suffered from a number of limitations, not least severe price volatility. Thus, crypto assets have served as a highly speculative asset class for certain investors and those engaged in illicit activities, rather than a means to make payments," the report says.

The group of largest and most influential countries that includes the United States, Japan, Germany, France, the United Kingdom, Italy and Canada, published a report on stablecoins. The authors of the document recognized that global stablecoins involve some risks, but they can solve the problem of slow and expensive money transfers. 

At the same time, cryptocurrencies cannot be regarded as an effective solution, since they are “extremely unstable”, difficult to use, have limitations on scalability and problems with governance and regulation.

At this stage, stablecoins are not regulated either, which may cause a great deal of volatility. However, provided that certain rules are complied with, they can be convenient as a means of payment and store of value, according to G7 experts.

Notably, G7 has already warned of a tough regulatory approach towards Facebook'' stablecoin Libra.

Earlier, the group published a report on the financial stability risks related to the widespread adoption of stablecoins.