Stock Groups

G7 finance leaders lay out guidelines for central bank digital currencies By Reuters


© Reuters. FILE PHOTO : This illustration, taken on June 29, 2021, shows the representations of cryptocurrencies Bitcoin (Ethercoin, DogeCoin and Ripple), as well as Ripple and Litecoin. REUTERS/Dado Ruvic/Illustration/File Photo

(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.

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.