The Group of Seven advanced economies has been discussing central banks digital currencies (CBDCs), this week. They concluded that they should “do not harm” and adhere to strict standards.
On Oct. 13, G7 finance leaders met in Washington to discuss central bank digital currency and adopted 13 principles of public policy regarding their implementation.
Canada, France and Germany are all part of the G7. It includes Japan, Canada, France, Germany and Italy. G7 central bankers and finance ministers issued a joint statement:
“Strong international cooperation and coordination on these issues is key to ensuring that both public and private sector innovations will bring domestic and cross-border benefits, while remaining safe for users and wider financial system.”
The statement stated that CBDCs could be used as a complement to cash, and act as liquid, safe settlement assets. They can also anchor existing payment systems. The statement stated that digital currencies should be efficient and interoperable across borders.
Leaders of the G7 countries confirmed that they share a responsibility to reduce “harmful spillovers” to the international monetary system and financial system.
The statement stated that CBDC issuance should “be grounded in long-standing public engagements to transparency and rule of law and sound economic governance.” While no G7 country has issued a CBDC, several countries such as the United Kingdom have begun to research the technology’s economic impact.
Related:Cointelegraph predictions for the first 5 CBDCs of 2021-2022
They repeated the G20’s similar statement and said that no global stablecoin project should be in operation until it meets all legal, regulatory, oversight, and other requirements. These comments could be referring to Facebook’s Diem cryptocurrency, which has raised red flags among central bankers and financial leaders.
The U.S. is dragging its feet on CBDC plans, and the Federal Reserve is still skeptical about digital dollars. Cointelegraph reported that America is at risk of being left behind financially and technologically if it does not seriously consider its CBDC.
China is already a leader in digital currency, and China’s latest crackdown on crypto may be part of its grand plans for regulating central bank monetary flows.