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G7 finance heads issue recommendations on digital currencies

At a meeting of representatives of the G7 countries, it was decided that any digital currency issued by the state should “support, not harm” the ability of the central bank to fulfill its tasks of ensuring financial stability, as well as meet strict standards.

Source: reuters.com

Source: reuters.com

Once issued, the Central Bank Digital Currency (CBDC) will complement cash and act as a liquid and secure settlement asset, as well as the basis for payment systems. At the same time, CBDCs must not violate the powers of central banks – such assets must meet strict standards of confidentiality, transparency and accountability to protect user data.

The heads of financial departments of the G7 countries issued a joint statement, which, in particular, says: “Any digital currency of the central bank (CBDC) should be based on long-term commitments to transparency, rule of law and sound economic governance.” With the introduction of the CBDC, the number of international transactions could grow, but countries have a “shared responsibility to minimize the harmful effects on the international monetary and financial system.”

Central banks around the world are stepping up efforts to develop their own digital currencies, which will modernize financial systems and speed up domestic and international transactions. China is the leader in this area, while the G7 central banks are now setting common CBDC standards and principles.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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