The Group of Seven (G7) organization aims to help developing countries introduce central bank digital currencies (CBDCs) in line with international standards.
during the recent speech In preparation for the International Monetary Fund and World Bank Spring 2023 meetings, Japan’s top currency diplomat Masato Kanda revealed that the move will be one of the key topics of G7 discussions, along with other pressing issues such as Russia’s invasion of Ukraine.
Kanda said the G7 can address the challenges facing the global community from rapidly advancing digital technology by providing detailed guidelines for developing countries to develop CBDCs.
“We need to address the risks arising from the development of CBDCs by ensuring factors such as proper transparency and sound governance,” he added.
“As a priority this year, the G7 will consider how to help developing countries introduce CBDCs in line with appropriate standards, including the G7 Public Policy Principles for Retail CBDCs.”
The G7 (Group of Seven) is an organization of the world’s seven largest so-called “advanced” economies, consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
On Wednesday, Japan will chair a meeting of G7 financial leaders in Washington to discuss the global economy and financial markets, strengthening supply chains and the Ukraine crisis. reports by Reuters.
With the rapid growth of digital assets and the rise of CBDCs, governments around the world continue to grapple with the cascading effects of crypto on their respective economies and financial systems.
The Japanese minister noted that the rise of digital technology also poses new challenges such as cyber security, the spread of misinformation, social and political divisions, and the risk of destabilizing financial markets.
He claimed that unprecedented The collapse of cryptocurrency exchange FTXwhich operates in more than 100 different jurisdictions, was “a dire wake-up call” for policy makers to create regulation across borders.
“For crypto assets, there are some differing views between countries. But the consensus is definitely that we need more regulation, especially after the FTX fiasco.”
CBDCs are digital money issued by central banks and pegged to fiat currencies. Currently, 65 countries are in an advanced stage of CBDC development, and more than twenty central banks have launched their pilots, including China, Brazil, Japan, and Russia.
Citi Analysts Claim CBDCs Are the Next Wave of Crypto Adoption
Analyst at global investment bank Citi believe that the rise of CBDCs and the tokenization of real-world assets will power the next wave of mass adoption of blockchain technology.
“This is likely to be driven by the adoption of central bank digital currencies (CBDCs) by major central banks, as well as tokenized assets in gaming and blockchain-based payments,” the experts wrote in a report titled “Money, Tokens.” , and Games: Blockchain’s Next Billion Users and Trillions of Value.
The report estimates that by the end of this decade there could be over $5 trillion of CBDCs in circulation globally. This will give almost 2 billion people the opportunity to experiment with digital currency