Home Essential support G7 leaders favor CBDCs on condition they ‘support and do not harm’ central banks

G7 leaders favor CBDCs on condition they ‘support and do not harm’ central banks

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  • G7 countries are in favor of central bank digital currencies (CBDCs) but one main condition.
  • The establishment of CBDCs should not hamper the ability of central banks to maintain monetary and financial stability.
  • “No G7 authority has yet taken the sovereign decision to issue a CBDC and careful consideration of potential policy implications will continue, ”the G7 said.

The G7 countries – the US, UK, Japan, Italy, Germany, France, and Canada – agree that central bank digital currencies (CBDCs) have important benefits to offer. However, they have one main condition in the
public policy principles posed this week. Blockchain technology should not “harm” central banks and the existing monetary system.

Just because fiat currencies, like the US dollar or the British pound, would be issued digitally, doesn’t mean they should hinder central banks’ financial stability mandate.

“Any CBDC must support and ‘not undermine’ the ability of central banks to fulfill their monetary and financial stability mandates.”

Extract from the statement by the G7 finance ministers and the governor of the central bank on CBDCs and digital payments


According to the grouping of advanced economies, the issuance of a
CBDC would complement cash – acting as a liquid and secure settlement asset and an anchor for the payments system. And, the basis of its existence should be based on transparency, the rule of law and good economic governance.

“No G7 authority has yet made a sovereign decision to issue a CBDC and careful consideration of the potential political implications will continue,” the G7 said. The Intergovernmental Policy Forum also affirmed that the CBDC ecosystem must be protected against cybercrime, fraud and other operational risks.

The need for a set of international standards
As individual countries strive to regulate cryptocurrencies, setting up an international structure is essential, experts say. Indeed, the nature of cryptocurrencies is global – CBDC or otherwise – especially since one of the main problems in the global monetary system that these digital currencies seek to solve is remittances.

According to the G7, all member countries have a shared responsibility to minimize the adverse impact on the international monetary and financial system.

“We note the importance of considering interoperability on a cross-border basis given the potential role of CBDCs in improving cross-border payments. “

Extract from the statement by the G7 finance ministers and the governor of the central bank on CBDCs and digital payments

The G7 position on CBDCs echoes a similar statement made by the larger G20, which includes India, reiterating that no global stablecoins project should start working until it meets legal requirements. , regulatory and supervisory.

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