G7 Finance Leaders Set Guidelines for Central Bank Digital Currency

Author: MOS Finance Team – Leah

Oct. 13 (Reuters) – The world’s seven most advanced economies (G7) said on Wednesday that any digital currency issued by central banks must support the ability of their banking systems to fulfill their monetary mandates and financial stability, and must also meet extremely strict criteria.

After Wednesday’s meeting the G7 also said that if a central bank digital currency (CBDC) is issued, it would have three features, a complement to cash, the ability to act as a secure liquid asset, and an enhancement to the payment system.

These digital currencies (CBDC) must be issued in a way that does not infringe on the central bank’s currency mandates while meeting strict standards of privacy, transparency, and protection of user data.

In terms of cross-border payments, the G7 said that while digital currencies would improve convenience, they have a shared responsibility to minimize harmful international transfers of money and damage financial systems.

Communist China has been advanced in developing digital currencies in an attempt to take control and set standards in this new area, while G7 has been trying to develop common standards for issuing CBDCs. Therefore, the digital currency of Communist China can only be used and recognized within China itself, and the developed countries in the world will not agree and participate in it.

Sources: https://www.reuters.com/business/finance/g7-statement-cbank-digital-currencies-must-do-no-harm-cbank-mandates-2021-10-14/

Edited by: Hetangyuese
Proofread by: Hetangyuese
Posted by: Hetangyuese

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1 month ago

I personally believe bitcoin and other cryptocurrency is a bubble that will pop Caveat: I am not a financial expert, I do not provide financial advice