The G-7 will focus on helping developing countries introduce CBDCs

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The advanced countries of the Group of Seven (G-7) will prioritize how they can better help developing countries introduce their central bank digital currencies (CBDCs), Masato Kanda, a senior Japanese financial diplomat, said at the meeting. a seminar in Washington DC on Tuesday.

“Fast-evolving digital technologies have provided tremendous benefits for many years, including cheaper and faster cross-border payments accessible to a wider audience, but new technologies present challenges,” said Kanda, Japan’s vice minister. Finance for international business. “We need to address the risks associated with the development of CBDCs by ensuring factors such as proper transparency and good governance.”

Japanese Prime Minister Fumio Kishida will host this year’s G-7 summit in Hiroshima. Discussions over crypto regulation are expected to gain momentum ahead of a meeting of finance ministers and central bankers from G-7 nations in mid-May. The G-7 plans to toughen global crypto regulations, with a focus on increasing corporate transparency and protecting consumers.

“The collapse of FTX was a serious wake-up call on the need for proper consistent regulation across borders, finalizing the work of the FSB (Financial Stability Board) to develop high-level recommendations on the activities of crypto assets in the market and on the global stablecoin arrangement is important and the effective implementation of this recommendation is also crucial,” Kanda said.

FTX Japan customers were among the first to recoup their money from the crypto exchange’s collapse due to Japan’s relatively strict regulatory regime for crypto.

The Financial Stability Board (FSB) and the International Monetary Fund have been tasked by the Group of 20 major economies to present a jointly produced position paper for global crypto rules by September or October.

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