Countries all over the world have been gearing up to develop and launch their own central bank digital currencies (CBDC). In a recent development, finance officials from the Group of Seven advanced economic nations worked towards guidelines in this regard.
They concluded that CBDCs should “support and do no harm” to the bank’s ability to fulfil its mandate on monetary and financial stability, while meeting existing rigorous standards.
The G7 leaders met on October 13 to discuss the emerging technology among other issues, coming up with 13 public policy principles regarding the implementation of CBDCs. The group noted that these digital currencies must provide support to their central bank’s ability to ensure monetary and financial stability.
The group, which consists of Canada, France, Germany, Italy, Japan, the U.K., and the U.S., issued a joint statement by its finance ministers and central bankers, noting,
“Strong international coordination and cooperation on these issues helps to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.”
They further claimed that the issuance of these currencies must not infringe upon the mandates of central banks. It should also meet standards of privacy, transparency, and accountability for the protection of user data. The statement further elaborated that,
“Any central bank digital currency (CBDC) should be grounded in long-standing public commitments to transparency, rule of law and sound economic governance,”
Further, the guidelines…