The G7 heads of state and government publish guidelines on digital currencies from central banks

The group of seven advanced economies talked about Central Bank digital currencies (CBDC.) This week, for its English acronym) and has come to the conclusion that they must not “cause harm” and meet high standards.

The G7 leaders met in Washington on October 13 to discuss central bank digital currencies and adopted 13 public order principles for their application..

The G7, made up of Germany, Canada, the United States, France, Italy, Japan and the United Kingdom, called for the new digital currencies of central banks to “not affect” their ability to maintain financial stability.. In a joint statement, the G7 finance ministers and central bankers stated:

“Strong international coordination and collaboration on these issues helps public and private sector innovations bring national and cross-border benefits while being safe for users and the financial system in general.” ?

The G7 heads of state and government publish guidelines on digital currencies from central banks
The G7 heads of state and government publish guidelines on digital currencies from central banks

He added that CBDCs would complement cash and act as secure and liquid settlement assets as well as anchor existing payment systems. Digital currencies must be energy efficient and fully interoperable across borders, the statement added.

The heads of state and government of the G7 countries have confirmed this they have a shared responsibility to minimize “the harmful effects on the international monetary and financial system”..

The issuance of a CBDC should be “based on long-standing public commitments to transparency, rule of law and good business governance,” the statement said.. To date, no G7 country has issued a CBDC, but several, such as the UK, are actively studying the technological and economic implications.

Following a similar G20 statement, they reiterated that no global stablecoin project should be operational until it meets legal, regulatory and prudential requirements.. The comments may refer to the Diem cryptocurrency introduced by Facebook, which has caused alarms among financial leaders and central banks.

The United States has dragged out its CBDC plans and the Federal Reserve remains very skeptical about digital dollars. As Cointelegraph reported in September, The United States is at risk of falling technologically and financially if it does not give serious thought to its own CBDC.

China is already leading with its digital yuan, and his recent crackdown on cryptocurrencies is likely part of his grand plans to further encourage and control central bank cash flows.

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