G7 member nations reiterate that CBDCs could play a major role in maintaining a good financial system but, similar to existing technologies, have to be monitored and regulated for potential risks.
Japan's finance diplomat Masato Kanda stated that launching CBDCs pose significant risks to the financial systems, and as head of the summit, they will be exploring how to mitigate these risks.
G7 nations are increasing the pace of discussions related to digital currency regulations ahead of a meeting of the Group’s central bank governors and finance ministers in May.
The G7 inter-governmental political forum is the latest global body to highlight the need for digital currency regulations, imploring the FSB to establish the regulations quickly.
Finance ministers of the G7 countries have reached an agreed position on 13 public policy principles for central bank digital currencies, in a move that could pave the way for greater adoption of CBDCs across the world’s leading economies.
Prime Minister Chung Sye-kyung said the vaccine passport is built on blockchain technology to ensure security from possible identity theft.
There has been no sign of slowing down for the digital currency industry as the recent G7 meeting concluded that world governments agree on digital assets regulations.
Facebook has been threatened with legal action after rebranding its Libra stablecoin to “Diem,” following objections from a finance startup with the same name.
Finance ministers and central bank governors from across the Group of 7 countries discussed crypto assets and their increasing role in the global financial system.
Financial regulators in the world’s seven biggest economies will continue to oppose the launch of Facebook’s digital currency Libra until proper regulations are in place.
Outside of the previously lightly regulated cryptocurrency ecosystem, the guidance is essentially the application of FATF’s operative guidance called the “travel rule” for traditional financial institutions towards crypto businesses.
