G7 to Discuss Digital Currency Standards and Crypto Regulation

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By Reuters

The advanced economies of the Group of Seven (G7) will consider how best to help developing countries introduce central bank digital currencies (CBDCs) that meet appropriate international standards, Japan’s top foreign exchange diplomat said on Tuesday. , Masato Kanda.

The move will be among the key themes of the G7 talks that Japan is chairing this year, as part of efforts to address the challenges facing the global community due to rapidly changing digital technology, he said. he declares.

Read:Africans lose the least in global crypto scams

“We need to address the risks of CBDC development by ensuring factors such as proper transparency and good governance,” Kanda said at a seminar in Washington.

“As a priority this year, the G7 will consider how best to support developing countries to introduce CBDC in accordance with appropriate standards, including the G7 public policy principle for retail CBDC,” he said. -he declares.

Outside of the G7, China leads the pack in issuing digital currency. G7 central banks have established common standards for issuing CBDCs while some are experimenting.

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Kanda said the rapid innovation of digital technology brings various benefits but also new challenges such as cybersecurity, the spread of disinformation, social and political divides as well as the risk of destabilization of financial markets.

The collapse of crypto exchange FTX last year “was a serious wake-up call” for policymakers to create cross-border regulation, he said.

Collapsed FTX crypto exchange platform. PICTURES | SHUTTER

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“For crypto assets, there are a little bit divergent views between countries. But the consensus is definitely that we need more regulation, especially after the FTX shock,” Kanda said.

Kanda, who is among policymakers gathered in Washington for the International Monetary Fund (IMF) spring meetings this week, said another priority for this year’s G7 talks will be to address the debt vulnerabilities of some middle-income country.

Kanda said it might be a bit difficult to see concrete results for countries like Zambia, Ghana and Ethiopia, when asked what the debt talks might achieve this week.

“For Sri Lanka, I hope we can move forward, with a plan to launch a creditors’ committee on Thursday initiated by Japan, France and India, the G20 chair,” Kanda said.

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