By Jan Strupczewski

BRUSSELS, Oct 12 (Reuters)Financial leaders of the world’s seven biggest economies will say on Tuesday that they oppose the launch of Facebook’s FB.O Libra stablecoin until it is properly regulated, a draft G7 statement showed.

The draft, prepared for a meeting of finance ministers and central bankers of the United States, Canada, Japan, Germany, France, Italy and Britain, said digital payments could improve access to financial services, cut inefficiencies and costs.

But such payment services had to be appropriately supervised and regulated so that they would not undermine financial stability, consumer protection, privacy, taxation or cybersecurity, the draft statement, seen by Reuters, said.

Without proper supervision, such stablecoins could be used for money laundering, terrorist and proliferation financing, could compromise market integrity, governance, and undermine legal certainty, it said.

“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards,” the draft said.

Stablecoins are tied to a traditional currency or basket of assets, and used for payments or storing value.

The G20’s Financial Stability Board (FSB) set out 10 recommendations in April for a common, international approach to regulating stablecoins, prompted by social media giant Facebook proposing its Libra stablecoin.

The G7 draft notes that a number of G7 authorities are exploring the opportunities and risks associated with central bank digital currencies (CBDCs).

The European Central Bank said this month that it should prepare to issue a digital euro to complement banknotes and its head Christine Lagarde said on Monday the bank was “very seriously” looking at the creation of a digital euro.

The Bank of England has also launched consultations on a digital pound sterling, but the Bank of Japan and

Adds specific targets, names of Chinese banks, background

SHANGHAI/BEIJING Sept 30 (Reuters)China on Wednesday published draft rules that require its global systematically important banks to beef up capacity to absorb losses to head off financial instability.

Such banks must meet specific total loss-absorbing capacity (TLAC) targets starting 2025, and the move is aimed at improving the risk-disposal mechanism at Chinese lenders, the China Banking and Insurance Regulatory Commission (CBIRC) said.

China’s top four lenders – Industrial and Commercial Bank of China 601398.SS1398.HK, Agricultural Bank of China Ltd 601288.SS, 1288.HK, Bank of China 601988.SS3988.HK and China Construction Bank 0939.HK601939.SS are designated as global systemically important banks.

The new rules require that such banks in China hold a TLAC amount of at least 16% of risk-weighted assets starting Jan 1, 2025 – six years later than major global banks elswere – and the bar is further raised to 18% from Jan. 1, 2028.

They face an estimated funding gap of 5.77 trillion yuan ($847.45 billion) to 6.51 trillion yuan by 2024 to meet TLAC requirements set by the Switzerland-based Financial Stability Board (FSB), S&P Global Ratings said on Aug. 25.

The TLAC requirement was designed by the FSB to ensure global systemically important banks having a bottom line of risk buffers in case “too big to fail” financial institutions go bankrupt.

($1 = 6.8087 Chinese yuan renminbi)

(Reporting by Samuel Shen in Shanghai, Cheng Leng and Ryan Woo in Beijing; Editing by Christian Schmollinger and Stephen Coates)

(([email protected]; +86 21 20830018; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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LAGOS (Reuters) – Nigeria’s long-awaited oil reform bill would take steps to privatise the Nigerian National Petroleum Company (NNPC), amend changes to deepwater royalties made late last year and create new regulatory bodies, a copy of the bill seen by Reuters showed.

FILE PHOTO: Cars queue to buy petrol at the NNPC Mega petrol station in Abuja, Nigeria March 19, 2020. REUTERS/Afolabi Sotunde

President Muhammadu Buhari has sent the bill to the Senate, Senate President Ahmad Lawan confirmed late on Monday. It, along with the House of Representatives, must sign off on the bill before it can become law. Nigeria is Africa’s largest crude exporter.

Lawan said the communication from Buhari would be officially presented in the two chambers on Tuesday, and that they aimed to pass the bill “as quickly as possible.”

The legislation has been in the works for 20 years and looks to revise laws governing Nigeria’s oil and gas exploration not fully updated since the 1960s because of the contentious nature of any change to oil taxes, terms and revenue-sharing.

It proposes creating a limited liability corporation into which the ministers of finance and petroleum would transfer NNPC assets.

The government would then pay cash for shares of the company and it would operate as a commercial entity without access to state funds.

The changes could make it easier for the struggling company to raise funds. However the bill does not require government to sell shares in the company and, unlike previous reform proposals, does not set a deadline for privitisation to be completed.

The legislation would also amend controversial changes to deep offshore royalties made late last year by cutting the royalty that companies pay the government for offshore fields producing less than 15,000 barrels per day to 7.5% from 10%.

It would change a