Cryptocurrency regulation dominates the G7 agenda | Chronic

G7 finance ministers signed an agreement in France on Thursday allowing big tech companies such as Google, Amazon, Facebook or Apple to pay taxes in countries where they earn money, even if they do not pay. Are not physically present. territories.

They also agreed on the need to regulate the emergence of digital currencies, such as the planned Libra led by Facebook, with the aim of not disrupting the international financial system.

The technology tax levy commitment provides for the development of international rules to evaluate new business models, especially those that generate value without physical presence, as is happening in many digital businesses. .

"It's a big step forward for setting up a fairer and more effective tax system", said the French minister Bruno Le Maire, at a press conference at the end of the meeting held in Chantilly, north of Paris.

The Mayor felt that it was a question of "an ambitious agreement"as, for the first time, the challenges of the digital economy are taken into account, reported the EFE news agency.

The agreement implies that there is a minimum level of taxes to discourage the possibility of countries engaging in competition to determine who is cutting taxes further in order to attract business and investment from digital multinationals.

This issue had generated disagreements between the United States, where most of the major technology platforms are based, and France, which had approved a tax on these companies earlier this month.

The tax represents 3% of the turnover achieved in the European country by digital companies with a turnover exceeding 750 million euros, of which at least 25 million euros in La France.

"We are starting to develop a framework … We firmly believe that it should not be based on digital companies in the US"said US Treasury Secretary Steven Mnuchin.

Bond managers in the United States, Japan, Germany, the United Kingdom, France, Italy and Canada also closed the ranks around the need to regulate cryptocurrencies, the case of the nascent Libra being an example of concerns raised by the issue.

The Mayor said that the G7 agreed that companies should not have the same privilege as countries in the creation of means of payment, but without the control that implies.

"We can not accept that private companies issue their own currencies without democratic control"he said at the press conference.

Summit participants share their "Regulatory and Systemic Concerns" for the urgency of the parts "with a global and potentially systemic footprint, such as Libra", informed the French presidency of the G7 in a statement.

Leaders of the world's seven most industrialized countries fear that Facebook's ambitions for a digital currency will weaken not only its control over monetary and banking policies, but also pose security risks.