Crypto regulation prioritised in G7 discussion agenda
G7 discussions will also explore ways of assisting developing countries in introducing CBDC consistent with appropriate international standards.
This year’s Group of Seven (G7) discussion chaired by Japan will prioritise digital currency standards. Against the backdrop of the collapse of the crypto exchange FTX last year, policymakers feel a heightened need to regulate crypto assets. Masato Kanda, Japan’s Vice Minister of Finance for International Affairs, said to Reuters that while diverging views exist among countries on the issue of regulating crypto, the broad consensus is to regulate the space.
Consequently, discussions will explore ways of assisting developing countries in introducing central bank digital currencies (CBDC) consistent with appropriate international standards and developing G7 public policy principles for retail CBDC. Unlike wholesale CBDCs, which are developed for institutional functions like transferring funds between banks, retail CBDCs are intended for use by the general public. Kanda added that the other area of focus would be on debt vulnerabilities confronting middle-income countries like Gambia, Ghana, Ethiopia and Sri Lanka.
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