G7 countries are discussing more crypto regulation and ways to help developing countries adopt central bank digital currencies (CBDCs).” As a priority this year, the G7 will consider how best to help developing countries introduce CBDCs that are consistent with appropriate standards, including the G7 Public Policy Principles for Retail CBDCs,” said Japan’s Vice Finance Minister for International Affairs.
G7 to discuss stronger crypto regulations
Reuters reported, citing Japan’s Vice Finance Minister for International Affairs Masato Kanda, that the G7 countries will discuss stronger cryptocurrency regulations and explore ways to help developing countries introduce central bank digital currencies (CBDCs) that are consistent with international standards.
The G7 consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union also attending the G7. Japan holds the G7 presidency this year.
Kanda explained at a seminar in Washington on Tuesday that the crypto and CBDC discussions are part of the G7’s efforts to address the challenges the international community faces from fast-moving digital technologies. He stressed that the collapse of crypto exchange FTX last year was a “serious wake-up call” for policymakers to create cross-border regulation, elaborating:
There seems to be a bit of a divergence of views on crypto assets between countries. However, there is no doubt that the consensus is that more regulation is needed, especially after the FTX shock.
The deputy finance ministers noted that while the rapid innovation of digital technology brings benefits, it also brings new challenges, including cybersecurity, the spread of misinformation, social and political divisions, and the risk of destabilizing financial markets.
G7 to help developing countries launch CBDCs
On the topic of central bank digital currencies, Japanese officials shared: “As a priority this year, the G7 will consider how best to help developing countries introduce CBDCs that meet appropriate standards, including the G7 Public Policy Principles on Retail CBDCs.” The Deputy Finance Minister stressed that:
elements such as appropriate transparency and sound governance need to be addressed to address risks from the development of CBDCs.
Different countries are at different stages of CBDC development. For example, the United States has not decided whether to launch digital dollars. Federal Reserve Chairman Jerome Powell recently stated that the Fed’s CBDC is in the early stages of experimentation.
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