The G7 countries are discussing more crypto regulation and ways to help developing nations introduce central bank digital currencies (CBDCs). “As a priority this year, the G7 will consider how best to help developing countries introduce CBDCs in accordance with appropriate standards, including the G7 public policy principle for retail CBDCs,” said the Deputy Finance Minister. for International Affairs of Japan.
G7 to discuss stronger crypto regulation
The G7 countries will discuss stricter regulation of cryptocurrencies and explore ways to help developing countries introduce central bank digital currencies (CBDCs) to ensure consistency with international standards, Reuters reported, citing the Deputy Finance Minister for International Affairs of Japan, Masato Kanda.
The Group of Seven (G7) consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the US. The European Union (EU) also attends G7 meetings. Japan holds the G7 presidency this year.
Kanda explained at a seminar in Washington on Tuesday that discussions on crypto and CBDC will be part of the G7’s efforts to address the challenges facing the global community due to fast-moving digital technology. He stressed that the crash of crypto exchange FTX last year “was a serious wake-up call” for lawmakers to create regulations across borders, elaborating:
For crypto assets, there are a bit of divergent views between countries. But the consensus is definitely that we need more regulation, particularly after the FTX shock.
The deputy finance minister noted that while the rapid innovation of digital technology has benefits, it has also brought new challenges, including cybersecurity, the spread of misinformation, social and political divisions, and the risk of destabilizing financial markets.
The G7 seeks to help developing countries with the launch of CBDCs
On the topic of central bank digital currencies, the Japanese official shared: “As a priority this year, the G7 will consider how best to help developing countries introduce CBDCs in accordance with appropriate standards, including the principle of G7 Public Policy for Retail CBDCs”. The Vice Minister of Finance emphasized:
We have to address the risks of CBDC development by ensuring factors like proper transparency and strong governance.
Different countries are at different stages of CBDC development. The US, for example, has not decided whether to launch a digital dollar. Federal Reserve Chairman Jerome Powell recently said that the Federal Reserve’s CBDC is in the early stages of experimentation.
What do you think about the G7 wanting more regulation and planning of cryptocurrencies to help developing countries implement central bank digital currencies (CBDCs)? Let us know in the comments section.
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