(Reuters) – The Group of Seven developed economies stated Wednesday that digital currencies issued by central banks must support and not harm the bank’s capacity to meet its financial and monetary stability mandates. They must also adhere to strict standards.

The G7 nations stated after Wednesday’s meeting that they would issue a digital currency central bank (CBDC), which will complement cash and act as a liquid and safe settlement asset. Also, it could be used to anchor the payments system.

They stated that the currency must not be in violation of the mandates of the central banks and have to meet strict standards for privacy, transparency, accountability, and protection of users’ data.

In a statement, the G7 finance chiefs stated that “any central bank digital money (CBDC), must be supported by long-standing public engagements to transparency and rule of law”

CBDCs may increase cross-border payments but the G7 countries said that they share a responsibility to reduce spillovers into the international financial and monetary system.

To modernize the financial system and accelerate international payments, global central banks are stepping up their efforts to create digital currencies.

China leads the way in issuing digital currencies. G7 central bank members have worked to create common standards and guidelines for issuing CBDCs, as they continue with their experiments.