The leaders of the Group of Seven countries issued the central bank digital currency guidelines, saying that CBDC must meet strict standards
The Group of Seven (G7) has been discussing central bank digital currencies (CBDC) this week, believing that they should “do no harm” and meet strict standards.
On October 13, G7 financial leaders met in Washington to discuss the central bank’s digital currency and passed 13 public policy principles for its implementation.
The G7, which is composed of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, stipulates that any newly launched CBDC should “not harm” the ability of the central bank to maintain financial stability. In a joint statement, the G7 finance ministers and central bank governors stated:
“On these issues, strong international coordination and cooperation can help ensure that innovation in the public and private sectors will bring domestic and cross-border benefits, while being safe for users and the wider financial system.”
The statement added that CBDC will complement cash. In addition to supporting the existing payment system, it can also act as a liquid and safe settlement asset. The statement also stated that digital currencies must be energy-efficient and fully interoperable on a cross-border basis.
The G7 leaders firmly believe that they have a shared responsibility to minimize “harmful spillover effects on the international monetary and financial system.”
The statement also said that the issuance of CBDC should be “based on a long-standing public commitment to transparency, the rule of law, and sound economic governance.” No country in the G7 Group has issued CBDC, but several countries such as the United Kingdom are actively studying the technical and economic impact of this technology.
They reiterated that no global stablecoin projects should be launched until the legal, regulatory, and supervisory requirements are resolved, which is consistent with a similar statement issued by the larger Group of Twenty (G20). These comments may refer to the Diem cryptocurrency that Facebook plans to launch , which has aroused the vigilance of fiscal leaders and central bank governors.
The United States has been delaying the CBDC plan, and the Fed is still highly skeptical of the digital dollar. According to a report by Cointelegraph in September, if the United States does not begin to seriously consider its own CBDC, it will face the danger of falling behind technically and financially.
China is already at the forefront of the world in terms of digital renminbi, and the recent crackdown on cryptocurrencies may be part of its grand plan to further promote and control central bank currency flows.
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