According to Masato Kanda, Japan’s senior currency diplomat, the Group of Seven (G7) advanced economies, which Japan is chairing, is working on ways to help poor countries implement central bank digital currencies (CBDCs) in line with international norms. will address The move comes as part of the G7’s efforts to address the challenges posed by digital technology.
Kanda said the G7 will prioritize finding ways to assist developing countries in introducing CBDCs while ensuring transparency and good governance, including adhering to the G7 Public Policy Principles for Retail CBDCs. Although China has been at the forefront of issuing a digital currency, the G7 central banks have agreed on common standards for issuing CBDCs while some continue to experiment.
The rapid pace of digital innovation offers various benefits, but also new challenges such as cyber security, the spread of misinformation, social and political divisions, and the risk of destabilizing financial markets. Policymakers should establish cross-border regulations for crypto assets, especially in light of the collapse of crypto exchange FTX last year, which Kanda called a serious wake-up call.
In addition, the G7 would prioritize addressing debt vulnerabilities in some middle-income countries, Kanda said. While he acknowledged that achieving concrete results for countries such as Zambia, Ghana and Ethiopia could be challenging, he expressed hope that progress would be made for Sri Lanka, Japan, France and G20 president India launched plans to launch a creditor committee. Will. on Thursday. Policy makers from around the world are gathering in Washington this week for the spring International Monetary Fund meetings.
The Group of Seven (G7) was formed in the 1970s to provide a forum for leaders to discuss and coordinate economic policies and other global issues of common concern.