According to Reuters, which cited Masato Kanda, Japan’s Vice Minister of Finance for International Affairs, the G7 nations will discuss tighter cryptocurrency regulation as well as ways to help developing nations introduce central bank digital currencies (CBDCs) to ensure compliance with international standards.
The Group of Seven (G7) is composed of Canada, the United States, the United Kingdom, Germany, France, and Italy. The G7 meetings are also attended by the European Union (EU). This year, Japan is the G7’s President.
G7 and CBDC
The CBDC and cryptocurrency conversations will be a part of the G7’s attempts to solve issues the international community is facing as a result of rapidly advancing digital technology, according to Kanda, who stated this at a conference in Washington on Tuesday.
He emphasized that the failure of the cryptocurrency exchange FTX last year “was a serious wake-up call” for decision-makers to establish international regulation.
- G7 nations will discuss tighter cryptocurrency regulation to help introduce CBDCs.
- This year, Japan is the G7’s President.
- G7 would prioritize this year’s efforts to assist developing nations in introducing CBDC.
While the rapid advancement of digital technology has its advantages, the vice finance minister pointed out that it has also created new problems, such as cyber-security concerns, the propagation of false information, social and political differences, and the potential for financial market instability.
The Japanese official said the G7 would prioritize this year’s efforts to assist developing nations in introducing central bank digital currencies under relevant criteria, including the G7 public policy concept for retail CBDC.
Vice Minister of Finance stressed: By making sure that things like sufficient transparency and sound governance are in place, we must mitigate the risks associated with the development of CBDC.
The growth of CBDC differs greatly among nations. For instance, the United States has not determined whether to introduce a digital dollar. Jerome Powell, the chairman of the Federal Reserve, recently stated that the Fed’s CBDC is still a new experiment.