G7 Country Leaders Issue Regulations On Central Bank Digital Currencies

The G7 group of countries issued very strict rules for central bank digital currencies. (photo; unsplash)

JAKARTA - A spokesman for the Group of seven developed countries or G7 said on Wednesday 13 October that any digital currency issued by central banks must "support and not jeopardize" the bank's ability to fulfill its mandate on monetary and financial stability, and must also meet stringent standards. .

"If issued, central bank digital currencies (CBDC) would complement cash and could act as a liquid and secure settlement asset and anchor for the payment system," a G7 source said after their meeting on Wednesday.

However, the currency must be issued in a manner that does not violate central bank mandates, and meets strict privacy, transparency and accountability standards for the protection of user data.

"Any central bank digital currency (CBDC) must be based on a long-term public commitment to transparency, the rule of law and sound economic governance," the G7 financial leaders said in a statement.

While CBDCs could increase cross-border payments, the G7 countries said they have a "shared responsibility to minimize harmful spillovers to the international monetary and financial system."

Global central banks have stepped up efforts to develop their own digital currencies to modernize financial systems and accelerate domestic and international payments.

China has been leading the pack for issuing digital currencies, while G7 central banks have been working to set a common standard for issuing CBDCs as some continue experimentation.