Still have questions?
Contact Us
New York (US)
590 Madison Avenue, 21st Floor,
New York, NY 10022
London (UK)
71-75 Shelton Street, London,
WC2H 9JQ
Dublin (EU)
6th Floor,
2 Grand Canal Square, Dublin 2
Copyright © 2022 Fluency Group Ltd. All Rights Reserved.
Back to blog
Industry Insights
October 13, 2021

REUTERS: G7 finance leaders lay out guidelines for central bank digital currencies

(Reuters) – Group of Seven advanced economies said on Wednesday that any digital currency issued by a central bank must “support and do no harm” to the bank’s ability to fulfill its mandate on monetary and financial stability, and must also meet rigorous standards.

If issued, a central bank digital currency (CBDC) would complement cash and could act as a liquid, safe settlement asset and an anchor for the payments system, the G7 nations said after their meeting on Wednesday.

But the currencies must be issued in a way that do not infringe upon the central banks’ mandates, and meet rigorous standards of privacy, transparency and accountability for protection of user data, they said.

“Any central bank digital currency (CBDC) should be grounded in long-standing public commitments to transparency, rule of law and sound economic governance,” the G7 finance leaders said in a statement.

While CBDCs could enhance cross-border payments, the G7 nations said they have a “shared responsibility to minimize harmful spillovers to the international monetary and financial system.”

Global central banks have stepped up efforts to develop their own digital currencies to modernize financial systems and speed up domestic and international payments.

China has been leading the pack toward issuing a digital currency, while G7 central banks have been working to set common standards toward issuing CBDCs as some proceed with experiments.

(Reporting by Leika Kihara in Tokyo; Editing by Christopher Cushing and Leslie Adler)

Source: https://money.usnews.com/investing/news/articles/2021-10-13/g7-statement-central-bank-digital-currencies-must-do-no-harm-to-central-bank-mandates

Share it in your social media

Related

Industry Insights May 23, 2022 Industry Insights May 23, 2022 Lagarde says crypto is ‘worth nothing’ and should be regulated BLOOMBERG: Lagarde says crypto is ‘worth nothing’ and should be regulated. Lagarde said she’s skeptical of crypto’s value, contrasting it with the ECB’s digital euro—a project that may come to fruition in the next four years. Industry Insights March 09, 2022 Industry Insights March 09, 2022 THE WHITE HOUSE: President’s Executive Order on Ensuring Responsible Development of Digital Assets THE WHITE HOUSE, March 9, 2022, US-President's Executive Order on Ensuring Responsible Development of Digital Assets. Within 120 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, shall establish a framework for interagency international engagement with foreign counterparts and in international fora to, as appropriate, adapt, update, and enhance adoption of global principles and standards for how digital assets are used and transacted, and to promote development of digital asset and CBDC technologies consistent with our values and legal requirements.  Industry Insights January 24, 2022 Industry Insights January 24, 2022 Bank Of England: Minutes of the CBDC Technology Forum – January 2022 Bank of England, Meeting Minutes of the CBDC Technology Forum, London, 09 February 2022 - The Member presentation concluded that the ledger-centric account model likely best met the requirements for CBDC.

Start planning now

Start by understanding how things will change and what can be improved across your business. Regardless of your role and how entrenched you are in the existing system, CBDC will hit with game-changing impact—get started today!
Get in touch